FMR Infra has formed an SPV for the construction of a new airport. The company has borrowed Rs 100 crore from Smart bank. The project was stopped mid way due to some land acquisition and labour union issues. What can the bank do,to recover the lent?
11
votes
Can sell the assets of SPV,and recover any amount due.
Can ask FMR Ltd. to repay the amount due.
First, recover the money from the SPV assets if possible, and the balance if any from FMR Ltd
The bank has no option but to write off the loan