PC Jeweller, facing financial strain due to its debt burden, announced today that Punjab National Bank (PNB) has granted approval for its One-Time Settlement (OTS) proposal. The decision was communicated to PC Jeweller through a letter dated July 6. The approved terms of the OTS encompass a mix of cash and equity components, alongside the release of securities and mortgaged properties held by the consortium of lenders.
Earlier State Bank of India (SBI) had accepted the OTS proposal more than three months ago. PC Jeweller encountered financial difficulties in February 2023 when lenders decided to recall loans totaling Rs 3,466 crore, following the company’s default on repayments to banks and financial institutions.
According to PC Jeweller’s annual report for fiscal year 2021-22, the company had borrowed from 14 banks including SBI, Indian Bank, Union Bank, and Punjab National Bank, amounting to Rs 3,278 crore in principal and interest. Notably, the largest creditors were SBI (Rs 1,060 crore), Union Bank of India (Rs 530 crore), Punjab National Bank (Rs 478 crore), and Indian Bank (Rs 226 crore).
- SBI: Rs.1060 crore
- Union Bank of India: Rs.530 crore
- Punjab National Bank: Rs.478 crore
- Indian Bank: Rs.226 crore
PNB’s approval of the OTS proposal marks a crucial milestone for PC Jeweller, facilitating the resolution of its outstanding debts and addressing its financial challenges moving forward.
