A2Z Infra Engineering goes for one-time settlement of Rs 134 cr dues to IDBI Bank
A2Z Infra Engineering Ltd has managed to convince IDBI Bank to agree to its proposal for One-Time Settlement (OTS) of an outstanding due of Rs 134.27 crore by making an one-time payment of Rs 24.02 crore, the company said in an exchange filing.
The Company had availed financial assistances from IDBI Bank Ltd and as per IDBI Bank, the total fund base outstanding of IDBI as on 18 September 2021 was Rs 134.27 Crore. A2z Infra Engineering was finding it difficult to make the payment and the account was NPA with them.
A2Z Infra Engineering was in regular discussion with the IDBI Bank for One Time Settlement and sent its updated proposal to [DBI Bank on 15 September 2022.
After that, various meetings and/or discussions held with the IDBI Bank, now they have accepted the proposal and have issued the — sanction/approval letter dated 15 December, 2022.
Summary Details of the IDBI OTS
The Company has received the acceptance a letter dated 15 December 2022 from IDBI to settle its all outstanding liabilities through full cash One Time Settlement (OTS). The members of the Board of Directors of A2Z Infra Engineering have approved the same through resolutions passed by circulation on 15 December 2022, for a deferred OTS Consideration of Rs 23.58 Crore as full and final settlement against the total fund base outstanding amount of Rs 134.27 Crore as on 1 September 2021. Further an amount of Rs 0.44 Cr will be made towards the margin money for the outstanding Bank Guarantee.
The payment of INR 24.02 Crore will be made as follows:
| Timeline | Amount Payable (Rs cr) | Any Remarks |
| Upfront payment | 1.05 | Already paid |
| Upfront payment on sanction/approval | 4.64 | Already paid |
| On or before 01 March 2023 | 5.25 | |
| On or before 01 June 2023 | 5.25 | |
| On or before 01 Sept 2023 | 7.83 | |
| Total | 24.02 |
Further a cure period of three months is available to the company for payment of any of the above instalments along with interest @10% or prevailing 1 year MCLR + 2 %, whichever is higher.
Debt Reduction Plan and Reasons for OTS
Over the past few years, A2Z Infra Engineering has been working assiduously to turn the Company around by addressing and reducing the debt burden of the Company.
In this reference Company had earlier announced settlement of debt of SICOM Ltd, Edelweiss Asset Reconstruction Company Ltd as representative of EARC Trust SC 299 for loan assigned by Yes Bank Ltd., State Bank of India (SBI), HSBC Bank, Edelweiss Asset Reconstruction Company Ltd. as representative of EARC Trust SC 217 for loan assigned by ICICI Bank Ltd., ICICI Bank Ltd, Standard Chartered Bank and DBS Bank.
Also See: Zee Entertainment dragged to insolvency court by IDBI Bank
