Siva Industries: Creditors Drop Siva Industries Bankruptcy Process

Sivasankaran, who was the founder of Aircel before selling it to Malaysia’s Maxis Communications, is no stranger to controversy.

Synopsis

The creditors, which include State Bank of India and Maxis Communications Bhd of Malaysia, the former owner of telecom operator Aircel, have accepted Sivasankaran’s offer to pay them Rs 500 crore in exchange for the cancellation of all outstanding debts and the withdrawal of legal proceedings against his company, according to the persons cited above. Creditors voted to withdraw last week.

Creditors have agreed to withdraw bankruptcy proceedings against Siva Industries and Holding, the holding company of businessman C Sivasankaran’s group, and accept an out-of-court offer from him, sources say close to the file. Bankruptcy experts called the development unusual, citing developers’ rejection of such offers in the past. IDBI Bank, one of the financial creditors, confirmed the development. “It is a fact that the

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