Arcotech Limited has made a regulatory disclosure pursuant to Regulation 30 read with Schedule III of the SEBI LODR Regulations, 2015, regarding approval of its One Time Settlement (OTS) proposal.
The disclosure includes two main sections as required by SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11th November, 2024:
1. Reason for Opting for OTS
The Company faced financial stress in the past resulting in defaults in its payment obligations to the consortium Banks and Financial Institutions ('the Lenders'). These lenders had extended various credit facilities/loans to the Company. Consequently, the accounts of the Company became Non-Performing Assets ('NPA'). The Company requested restructuring of its accounts, but this could not be implemented. Subsequently, the Company proposed a One Time Settlement to the lenders for its outstanding amount.
2. Brief Summary of the OTS
The OTS has been approved by all secured lenders including Banks and Financial Institutions who are part of the Consortium/JLF. The OTS amount and detailed terms have been agreed and finalized between the Company and lenders against total dues in full and final settlement.
As part of the settlement terms, IFCI Ltd will maintain symbolic possession of the factory premises of the Company until the date of full OTS payment. The Company expects to restart its operations soon following this settlement.