Corporate Insolvency In India - Liquidation Process

Facts of the case:

Refer below a balance sheet for XYZ Limited, based on the balance sheet and additional information provided provide a working for outcome to different class of creditors.

Additional information:

Secured Creditors:

1. Term loan is secured against fixed charge on land & building and fixtures & fittings. Bank A with INR 1,000 million term loan outstanding has first charge on the assets and Bank B with INR 400 million outstanding has second charge on the assets.
2. Working capital loan is provided by Bank B and secured against a floating charge on stock, debtors and other current assets of the Company.

Other Liabilities:

1. Workmen dues include amount payable for up to last 15 Months