ICICI Financial institution, performing by means of its Bahrain department as facility agent for a consortium of lenders, has filed a go well with within the Bombay Excessive Courtroom looking for to restrain MIAL from continuing with the ₹3,240 crore rights challenge, in accordance with a duplicate of the petition filed by the financial institution early this month and reviewed by ET.
The financial institution alleged that the problem breaches the phrases of an interim resolution enterprise (ISU) and a share pledge settlement signed in 2017, which prohibit any dilution of pledged fairness with out the lender’s consent. The matter is scheduled for listening to on July 21 earlier than justice RI Chagla.
ICICI Financial institution, GVK and Adani didn’t reply to ET’s queries.
The dispute stems from two mortgage amenities prolonged to GVK Coal Builders (Singapore). The primary, amounting to $1 billion, was offered in September 2011. The second, of $250 million, was in March 2014, the petition acknowledged. Financial institution of Baroda, Financial institution of India, Indian Abroad Financial institution and Canara Financial institution are among the many different lenders concerned.
These loans have been secured by a pledge of 32% fairness in GVK Airport Holdings (GVKAHL), representing a 16.16% oblique stake in MIAL. GVKAHL holds a 50.5% stake in MIAL, Adani Airport Holdings holds 23.5%, and the Airports Authority of India has 26%. The rights challenge is being supplied in a 27:10 ratio. GVKAHL is now a part of the Adani Group.ICICI Financial institution contends that the proposed rights challenge would cut back this pledged stake to about 4.37%, undermining the safety offered beneath the mortgage agreements.The rights challenge, authorised by MIAL’s board on June 12, affords 3.24 billion fairness shares at `10 every to present shareholders. ICICI Financial institution says that GVKAHL knowledgeable the financial institution of its choice to not subscribe to challenge simply 5 days earlier than what was to have been the supply’s cut-off date of July 5, citing lack of funds. The financial institution alleges this delay was deliberate and prejudicial to the lenders’ pursuits. The financial institution additionally raised considerations that the problem value of Rs 10 per share doesn’t mirror honest market worth and is as a substitute the minimal permissible value.
MIAL just isn’t listed. Senior counsel Venkatesh Dhond and Siddharth Ranade, companion of regulation agency Trilegal, are representing lenders. Senior advocate Vikram Nankani and regulation agency Rashmikant and Companions are representing some respondents.
The possession construction of MIAL modified in 2021, when Adani Airport Holdings, a unit of Adani Enterprises, purchased 97.97% of GVK Airport Builders, dad or mum of GVKAHL. The financial institution has sought a everlasting injunction towards the rights challenge and interim aid to stop any share allotment or motion that would have an effect on the pledged fairness, the petition acknowledged. It has additionally requested that any subscription acquired for the rights challenge ought to be saved in a separate account till the matter is resolved, it added.
