Tilaknagar Industries stock ends 14% up after entering into a settlement agreement with DCB Bank for subsidiary

Tilaknagar undertakes to settle the outstanding dues on behalf of its wholly-owned subsidiary Prag Distillery Pvt. Ltd. and settle all the pending disputes with the Bank.

Jul 06, 2021 04:07 IST India Infoline News Service

Tilaknagar Industries
Tilaknagar Industries has announced that the company entered into a settlement agreement with DCB Bank Ltd. (the Bank), one of the Financial Creditors of its wholly-owned subsidiary company, Prag Distillery Pvt. Ltd. (In liquidation). The agreement was signed on July 02, 2021.

In its regulatory filing today, the company stated that Tilaknagar undertakes to settle the outstanding dues on behalf of its wholly-owned subsidiary Prag Distillery Pvt. Ltd. and settle all the pending disputes with the Bank. The Bank agrees to accept the full and final settlement of Rs 22,52,77,632 and odd towards a full and final settlement of its claims against total dues amounting to Rs 28,91,77,142.

Further, in the agreement, upon full payment of all the dues under this Settlement agreement following the agreement, the Guarantors will be discharged of their financial obligations under Guarantee Documents and Prag Distillery Pvt. Ltd. will be discharged from its financial obligations under the Finance Documents.

On Sensex, Tilaknagar finished at Rs43.20 per piece skyrocketing by 14.44%. 

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