National Steel and Agro Industries OTS proposal gets thumbs up from UBI; stock up over 4%

The Bank one of the secured lenders of the company, has accorded its approval for the proposal of the OTS made by the company for settling its outstanding dues to the UBI, by payment of Rs85.30cr.

Sep 16, 2020 12:09 IST India Infoline News Service

steel sheet
National Steel and Agro Industries Limited updated the exchanges Tuesday about the settlement of outstanding amounts with the company's lenders by way of a one-time settlement (OTS). The Union Bank of India (UBI), one of the secured lenders of the company, has accorded its approval for the proposal of the OTS made by the company for settling its outstanding dues to the UBL, by payment of Rs85.30cr.

However, the said approval of the OTS by UBI is with certain conditions specified in the sanction letter provided by the UBI to the company.

National Steel & Agro Industries Ltd is currently trading at Rs4.09 up by Rs0.17 or 4.34% from its previous closing of Rs3.92 on the BSE. The scrip opened at Rs3.99 and has touched a high and low of Rs4.09 and Rs3.99 respectively.

Reasoning why the company is opting for OTS company said, “owing to the continuous losses, the company was not able to timely fulfil its repayment obligations to various secured creditors (Banks). Accordingly, the company's accounts with the secured creditors (Banks) are classified as an NPA,” the company said.

It further said that the company, however, is in discussions with all its secured lenders (Banks) to settle and restructure its outstanding dues. The company has proposed for the OTS with the secured lenders (Banks). The proposal was to discharge any obligation or liability in respect of the said outstanding dues of the company.

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