Explain logic in one-time settlement of Siva Industries: NCLT to lenders

PSU banks to get 26% of dues after third party guarantor payments

The National Company Law Tribunal (NCLT), Chennai, has asked lenders to explain the rationale behind the one-time settlement (OTS) offer made by Siva Industries under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016. The lenders have also been asked to give the timeline of cash flow to all the creditors. 

In a hearing held on Friday, the public sector undertaking (PSU) lenders informed the court that they will get 26 per cent of their dues after taking into account third-party guarantor payments. Also, operational creditors will get part of their dues under the settlement plan.

Until the last payment is