Bank Invokes Insolvency Code, Attaches Seaplane

Federal Bank, invoking provisions in the Insolvency Code 2016, has taken possession of a sea plane by using the services of an insolvency professional for recovery of a defaulted loan, The Hindu reported. A statement from the bank said that the seaplane company owed more than 6 crore to the bank and as the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act did not envisage action on assets such as aircraft, the bank invoked provisions of the Insolvency and Bankruptcy Code 2016 to recover the loan dues. Seabird Seaplane Pvt. Ltd. had obtained a loan of over 4 crore in 2014 from the bank. The craft was to be deployed for transporting passengers between Kochi and Lakshadweep. Read more