PC Jeweller informed stock exchanges on July 7 that it has received approval from Punjab National Bank (PNB) for its One Time Settlement (OTS) proposal. It said PNB, one of the leading banks among the consortium lenders to PC Jewellers, conveyed its decision via a letter dated July 6.
The debt-ridden jewellery company said, under the approved terms and conditions of the OTS, the settlement includes a combination of cash and equity components. Additionally, the proposal involves the release of securities and mortgaged properties held by the banks.
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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