ICICI Bank is likely to opt for a one-time settlement with Modern Syntex, whereby the company has offered to pay 50 per cent of the principal in return for its dues (principal and interest) to the banks and financial institutions, according to ICICI Bank sources.
Modern group functionaries confirmed that talks to this effect were going on, though a final decision has not been communicated to the company. The officials indicated that the company would be paying the settlement amount over a period of time.
Modern Syntex owes Rs 85 crore in principal and double the amount in interest to banks and financial institutions. However, the company has said that out of the total sanctioned amount of Rs 85 crore, only Rs 70 crore was disbursed, while the rest was adjusted against interest repayment.
Sources in financial institutions said that Modern Syntex has offered the option of either a one-time settlement or a rescheduling of its loans.
ICICI Bank is veering to the option of a one-time settlement as it seems to be a better option.
