PC Jeweller informed stock exchanges on July 15 that it has received approval from IndusInd Bank for its One Time Settlement (OTS) proposal. It said IndusInd Bank conveyed its decision via a letter dated July 15.
"The Company had opted for OTS to settle the outstanding dues. The terms and conditions of approved OTS include cash and equity component payable under settlement, release of securities and mortgaged properties etc," PC Jeweller said in an exchange filing.
On July 7, PC Jeweller had also received approval from Punjab National Bank (PNB), one of the leading banks among the consortium lenders to PC Jewellers, for its OTS proposal.
The relief follows more than three months after the State Bank of India (SBI), the country's largest lender, accepted the One Time Settlement (OTS) proposal submitted by the company.
PC Jeweller's troubles began in February 2023, when banks decided to recall loans advanced to it after it was revealed in a filing that the company had defaulted on loans worth Rs 3,466 crore from banks and financial institutions.
The company, in its annual report for fiscal 2021-22, stated that it had borrowed money from 14 banks, including SBI, Indian Bank, Union Bank and Punjab National Bank. In the annual report, the company said it owed the banks Rs 3,278 crore, which included the interest and the base amount.
The largest lenders are SBI with Rs 1,060 crore outstanding, Union Bank of India with Rs 530 crore, Punjab National Bank with Rs 478 crore, and Indian Bank with Rs 226 crore.
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