Financial Debt or Operational Debt? - mobilization advance given ...

Mobilization advance not considered financial debt u/s 5(8)(i) of Insolvency and Bankruptcy Code; lacks time value of money.

August 20, 2022

Case Laws Insolvency and Bankruptcy AT

Financial Debt or Operational Debt? - mobilization advance given by the Appellant to the Corporate Debtor - Mobilization advance was not disbursed against the consideration for the time value of money. - The guarantee referred to in Section 5(8)(i) must relate to any of the items referred to in sub clauses (a) to (h). The mobilization advance given by the Appellant to the Corporate Debtor does not fall in any of the clauses (a) to (h) hence no benefit can be availed of the Appellant of provisions of Section 5(8)(i). - Not to be treated as Financial Debt - AT

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Financial Debt or Operational Debt? - mobilization advance given ...

Mobilization advance not considered financial debt u/s 5(8)(i) of Insolvency and Bankruptcy Code; lacks time value of money.

August 20, 2022

Case Laws Insolvency and Bankruptcy AT

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