Urgent Query - Holding company and 100% subsidiary company

Yes they can recover from B,

if the loan is secured on a particular asset (s) then it cannot recover from subsidiary  co. 

Agreed with this answer also....Ya if its secured cant recover...

Yes they can recover the loan from B.

Agree with the above replies....The loan can be recovered from Bltd...

Only if there is a corporate guarantee, the bank can appraoch the Holding co to recover the loan.

 yes

agree with Krunal..

Yap, can be recovered from B.Ltd' if amount in full can not be recovered from the estate of A'ltd.

Agree, otherwise it can recover !!

i dont think so. Though i m not very much clear with provisions.

The base for the recovered from Holding Company can be only in case their is any Corporate Guarantee issued by the Holding Company in favour of Banker. In case the loan is unsecured then it can not be recovered if the available assests are less then the liability during liquidation.

 If holding company has given the gurantee then bank can.

otherwise..

As per the separate entity concept, Bank can not recove the loan from holding company. If one has use subsidiary to make such a planned fraud then court may lift the veil and recover the loan from victims.