Punjab National Bank Approves PC Jeweller's One-Time Settlement Proposal
PC Jeweller Ltd. announced on Sunday that Punjab National Bank has granted approval for a one-time settlement of its
By: : Suraj Sinha
Update: 2024-07-07 17:45 GMT
Punjab National Bank Approves PC Jeweller's One-Time Settlement Proposal
PC Jeweller Ltd. announced on Sunday that Punjab National Bank has granted approval for a one-time settlement of its outstanding dues. In a regulatory filing, PC Jeweller stated, "Punjab National Bank, the third-largest bank among the consortium banks of the company based on its exposure, has approved the One Time Settlement (OTS) proposal submitted by the company."
PC Jeweller opted for OTS to settle its outstanding dues with a consortium of banks. The approved terms and conditions of the OTS include cash and equity components payable under the settlement, as well as the release of securities and mortgaged properties, according to the filing.
PC Jeweller did not disclose specific details regarding its outstanding dues with all banks or the specifics of the OTS. In a late May investor presentation, PC Jeweller highlighted positive developments, including the withdrawal of a petition from the National Company Law Tribunal (NCLT) by SBI and favourable consideration of its OTS proposal by banks.
According to the presentation, the company has resumed efforts to enhance its brand presence and has initiated marketing initiatives towards this goal, which are showing tangible results in the current quarter.
As of March 31st, 2024, PC Jeweller maintains a broad network of 60 showrooms, including 6 franchisee-operated showrooms, spanning 44 cities across 15 states in India.
"Also, the core strengths of the company in the form of manufacturing and designing capabilities, manufacturing facilities, skilled staff, soft skills in the form of systems and procedures, customer policies, etc. remain intact," PC Jeweller said.
According to the presentation, the company is also undertaking comprehensive measures to enhance various aspects of its business operations. These initiatives include preparing to launch new jewellery collections, revitalizing its franchisee business model, and optimizing costs across its operations.