S.P. Apparels Ltd Provides Corporate Guarantee for UK Subsidiary Term Loan
S.P. Apparels Limited has provided a corporate guarantee to The Hongkong and Shanghai Banking Corporation Limited (HSBC) concerning a term loan facility availed by its wholly owned subsidiary, S.P. Apparels (UK) P Limited.The company guaranteed the financial obligations of the UK entity for an amount totaling Rs. 12,51,33,300. This guarantee serves as security for the term loan facility utilized by S.P. Apparels (UK) P Limited.
Key details regarding the corporate guarantee and its implications are as follows:
| Particulars | Details |
|---|---|
| Name of Beneficiary Party | SPApparels (UK) P Limited |
| Guarantee Amount | Rs. 12,51,33,300 |
| Guarantor | S.P Apparels Limited |
| Bank Involved | The Hongkong and Shanghai Banking Corporation Limited |
The transaction involves the management of interest by senior leadership in both parent and subsidiary entities. Mr. P. Sundararajan, who serves as Chairman & Managing Director of S.P. Apparels Ltd, holds a directorial position within SP Apparels (UK) P Limited.
Regarding the financial standing of the listed entity, the company stated that there is no material impact of this guarantee other than the required disclosure as a Contingent Liability in the Financial Statements.
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