The Board of Directors of Tulsyan NEC Ltd have approved and accepted the terms and conditions of the OTS proposal received from the State Bank of India vide its sanction letter no. SAMB/CHE/CLO-V/22-23/477 dated 20.08.22 which was received by the Company on 23rd August 2022.
Due to continued losses and huge interest costs, the debt of the company had grown beyond it means to service the debt at its originally accepted terms and conditions. The situation required a drastic reduction in the debt size by way of repayment or write off. The company had been trying its best to restructure the loans as per the RBI guidelines but, was unable to reach an acceptable debt size to the lenders and also getting the required credit rating for that amount. Due to uncertain economic conditions and onset of Covid desirable credit rating could not be availed. Therefore, the Company had to enter into Compromise Settlement with its lenders.
On 23.08.2022, the Company has received a communication of acceptance for its Compromise Settlement offer by the State Bank of India. The proposal envisages waiver of unpaid interest and a portion of Principal. The amount of settlement arrived will have to be paid over a period of 18 Months in structured quarterly installments.