NCLT clears Sterling SEZ's one-time settlement offer

The National Company Law Tribunal (NCLT) on Wednesday cleared a controversial proposal by public sector banks to withdraw bankruptcy proceedings against Sterling SEZ and Infrastructure Ltd after the company’s absconding promoters made a one-time settlement (OTS) offer to the lenders from overseas.

As the promoters of the company are not in India, the court asked the company’s resolution professional to act as an administrator of the company till further orders. The banks have taken a haircut of close to 65 per cent in the account and 90 per cent of its lenders have agreed to the one-time settlement.

The firm