IDBI Bank has secured a $239 million judgment in the commercial division of the High Court of London against a Cypriot subsidiary of India-based Essar Shipping Group, among one of the largest debt judgments obtained by an Indian bank in the English courts.
IDH International Drilling Holdco Ltd (IDH), the Cypriot-registered parent company of the borrowers, is disappointed with the judgment and is considering its position with regard to an appeal of this judgement, a spokesman for the Essar Group said.
Mumbai-based IDBI had lent $148 million to two Singapore-registered companies — Varada Drilling One Pte Ltd and Varada Drilling Two Pte Ltd — for the construction of two jack up drilling rigs in March 2013.
IDH gave a corporate guarantee in respect of the loan. The loan and guarantee were governed by English law and were, therefore, subject to the jurisdiction of the English courts.