Lanco Infra clarifies, ICICI Bank shares recoup losses
ICICI Bank, the biggest private sector lender in India, slipped more than one percent on Thursday on legal action by Perdaman Chemicals.
January 10, 2013 / 18:33 IST
ICICI Bank shares on Thursday closed at Rs 1179.50, little changed from its previous day closing price after hitting intra-day low at Rs 1,161. During the day's trade it slipped more than 1% based on reports that Australia based Perdaman Chemicals threatened the bank of legal action.
According to a Reuters report, Aussie firm is seeking 3.5 billion Australian dollars in damages from ICICI Bank, prime lender to Griffin Coal (owned by India’s Lanco) which went back on its promise in 2011 on a 25-year deal to supply coal to Perdaman ‘s planned coal to urea project.
Perdaman Chemicals claimed that ICICI deliberately "engaged in interference" in financing of its urea project. Perdaman Chemicals said the lender tried to gain secured creditor status above the company's rights.Later, Lanco Infratech clarified on Perdaman claims. ; Lanco Infratech Limited (LITL), the leading integrated infrastructure conglomerate with global footprints said, ICICI Bank has no contractual relationship with Perdaman."The case being referred to currently is the same case, as was filed against us 19 months back in May-2011 which we believe is baseless and will be decided in our favour very soon," the company said in a release."The current attempt of going against ICICI Bank is another desperate attempt of greenmail in frustration and this action against one of the most reputed institution of India, will further damage Perdaman's credibility and future prospects."Following the press statement, ICICI Bank shares recouped its loss and finally ended at Rs 1179.50 at the close of day's trading. According to the Lanco press note, Perdaman group doesn't have any ongoing business activity anywhere in the world and their claims against us and ICICI bank are an attempted greenmail, have no basis.Also Read
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