M&A

M&A

EPC firm Gayatri Projects' settlement plan from promoters gets NCLT nod

Economic Times  

Hyderabad-based Gayatri Projects has received approval from the National Company Law Tribunal (NCLT) for a one-time settlement plan proposed by its promoters. The plan involves a payment of INR 2,400 crore out of the outstanding dues of INR 8,100 crore owed to lenders led by Canara Bank. The promoters have committed to pay INR 750 crore in fund-based exposure and cover any invocation of bank guarantees.Under the plan, lenders are expected to receive INR 750 crore from promoters and an additional INR 450 crore from arbitration claims due to the company. Promoters have also agreed to pay INR 45 crore in bank guarantee commissions and provide cover for potential invocation of INR 1,100 crore in existing guarantees. A deposit of INR 115 crore has been made, with the rest to be arranged through asset monetisation and investor funding within 90 days.Thirteen properties of the company had been taken as collateral by banks, of which seven will be released for sale to facilitate loan repayment.Gayatri Projects executes Engineering, Procurement, and Construction (EPC) projects across roads, irrigation, power, and industrial sectors. The company was previously considered for liquidation after a buyer could not be found during a process initiated in November 2022.