A Ltd is 100% subsidiary of B Ltd (Holding company). A Ltd taken a bank loan which it is defaulted in repayment. Whether Bank can recover the loan amount from B ltd which is 100% Holding company of A ltd ?
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Urgent Query - Holding company and 100% subsidiary company
Replies (39)
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.
Only if there is a corporate guarantee, the bank can appraoch the Holding co to recover the loan.
yes
agree with Krunal..
| Originally posted by :SARWAN BERIWAL | ||
| " | if the loan is secured on a particular asset (s) then it cannot recover from subsidiary co. | " |
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.
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