NCLT to think about banks’ one-time settlement provide for Siva Industries

The listening to on the proposal of the lenders to go for one-time settlement (OTS) at an enormous haircut and withdraw chapter continuing in opposition to Siva Industries is anticipated to return up earlier than the National Company Law Tribunal (NCLT) this week.
The NCLT had final week requested the lenders to elucidate the massive haircut in one-time settlement plan permitted by the Committee of Creditors (CoC). As a part of the proposal, banks will get solely 6.5 per cent of the full debt of Rs 4,863 crore from the settlement provide made by C Sivasankaran, promoter of Siva Industries. Sivasankaran has provided to pay solely Rs 5 crore upfront and the stability inside 180 days of approval.
Banks have filed an utility underneath Section 12A of Insolvency and Bankruptcy Code 2016 (IBC) for withdrawing the insolvency proceedings and settle with Sivasankaran for Rs 323 crore. This means an enormous haircut of 94 per cent for the banks. If NCLT approves the OTS deal, the promoters will get again the corporate.