Pay up\, make peace: Promoters make one-time settlements with banks on loans

Pay up, make peace: Promoters make one-time settlements with banks on loans

Lenders say settlements will cross over 100 accounts in the March quarter

Dev Chatterjee & Abhijit Lele  |  Mumbai 

With rising litigation over insolvency cases, banks are increasingly opting for loan settlement offers from defaulting firms under Section 12A of the Insolvency and Bankruptcy Code (IBC). Under this section, lenders get the option to accept such offers from erring promoters.

Lenders say settlements will cross over 100 accounts in the March quarter. Promoters are in the process of negotiating one-time settlements, given the fiscal year-end is close. “There is anxiety among defaulters that they will lose control of their companies, and hence are coming forward with offers,” ...

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First Published: Fri, March 22 2019. 23:21 IST