EKI Energy Faces ₹10M Bank Guarantee Invocation by Vitol
EKI Energy Services Ltd has disclosed the invocation and encashment of a USD 10 million bank guarantee by Vitol Asia Pte Ltd. This follows a termination notice from Vitol alleging an Event of Default. EKI Energy disputes these claims, stating they are without basis and contrary to the agreement. The company intends to contest this through legal proceedings, including arbitration. Despite this dispute, EKI Energy asserts its sound financial position, with total equity of ₹418.93 crore (standalone) and ₹382.48 crore (consolidated) as of March 31, 2026, indicating its ability to meet obligations and continue operations. The company is providing this disclosure for transparency and will update stakeholders on further developments.
Key Highlights
- Vitol Asia invoked a USD 10 million bank guarantee against EKI Energy.
- EKI Energy disputes the alleged Event of Default and termination.
- Company will contest the invocation through legal proceedings and arbitration.
- EKI Energy maintains a sound financial position with significant equity.
- The company is committed to transparency and will provide further updates.
Price Impact
More from EKI