Union Bank of India (UBI) has reached the bankruptcy court, National Company Law Tribunal (NCLT) against Gammon India Limited, an infrastructure and engineering company, for a default of about Rs.315 crore. Mumbai-based Gammon India Ltd. had failed to repay a term loan and interest, totalling Rs.315 crore, to the state-run bank.

BSE-listed Gammon India owes around Rs.7,000 crore to its lenders, including Union Bank of India. The company incurred the consolidated net loss of Rs.1,153.77 crore on net sales of Rs.1667.62 crore, according to its FY17 results.

According to the bank, the infrastructure company first defaulted in October 2015. After that, the lenders had initiated various methods to recover the dues, including Corporate Debt Restructuring (CDR) and Strategic Debt Restructuring (SDR). The lender said in its petition filed in the tribunal. “The Term Loan Consortium Agreement (TLCA) was executed between Gammon India Ltd and United Bank of India as the Lead Bank and Union Bank of India on January 28, 2013.”

The company which founded by John C. Gammon in 1922  was instrumental in building many landmark structures in the country, including the ‘Gateway of India’, the country’s first cable-stayed bridge at Akkar in Sikkim etc.

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