Mumbai-based Kesar Enterprises Ltd on Wednesday, March 29, said its board of directors has approved a one-time settlement of around Rs 120.9 crore sanctioned by the UCO Bank.
Kesar Enterprises said, "The payments in pursuance of a one-time settlement should be completed by the company within the timeframe provided in the sanction letter issued by the bank."
Its loan accounts had been classified as a non-performing assets (NPAs) by UCO Bank due to non-payment of dues on time and financial problems, the company said.
The total liability of the company — which include its direct debt liability and the liability due to the invocation of corporate guarantee extended by the company — will be settled pursuant to the sanction of the one-time settlement by the bank and its acceptance by the board of directors of Kesar Enterprises.
Earlier, as part of the debt restructuring plan, the company had agreed to pay Rs 1.7 crore plus Rs 42.17 lakh in 24 instalments, starting from the quarter ending September 2016 to June 2022, according to the company's March 2022 annual report.
All security interest or guarantee under all the financing documents shall be released and a no-due certificate shall be issued by the bank upon receipt of the entire one-time settlement amount by the bank, it added.
(Edited by : Shoma Bhattacharjee)
First Published: Mar 29, 2023 5:55 PM IST
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