Dharan Infra-EPC Ltd executes OTS agreement with Canara Bank

Dharan Infra-EPC Limited (formerly known as KBC Global Limited) has executed a One-Time Settlement (OTS) Agreement with Canara Bank for the structured resolution of its outstanding financial obligations.

Key Terms of the Settlement:

- Name of the Lending Institution: Canara Bank
- Total Settlement Value (OTS): Rs. 10 Crore
- Initial Payment: An upfront payment of X 50,00,000 (5% of the outstanding amount) was remitted
- Balance Payment Schedule: The remaining amount shall be discharged in five instalments, with the final tranche payable within 90 days from sanction

Strategic and Financial Implications:

The aforementioned OTS signifies a constructive milestone in the Company's ongoing efforts to restructure its financial position and regularise its obligations. It shall have a positive bearing on the Company's balance sheet, reinforce its credibility amongst stakeholders, and serve as a foundation for improved financial discipline and growth readiness.

The Company wishes to clarify that while certain loans remain classified under default, they are entirely secured by collateral, the assessed value of which is approximately double the principal sum of the outstanding facilities. This ensures adequate protection for the lenders and mitigates the risk of any material adverse impact on the Company's operational or financial integrity.

We remain in active and constructive dialogue with our lending institutions, and the Company continues to pursue structured solutions for all residual obligations.

Source : Equity Bulls

Keywords

DharanInfraEPC OTS Agreement CanaraBank