JAL insolvency: Lenders reject one-time settlement

New Delhi, July 3

Lenders of Jaiprakash Associates Ltd (JAL) led by ICICI Bank on Wednesday rejected the modified one-time settlement proposal, in which the debt-ridden group had offered a higher upfront payment and sales of its cement assets.

During a hearing before the insolvency appellate tribunal NCLAT, senior advocate Sajeev Sen representing ICICI Bank informed the bench about the rejection of the OTS (one-time settlement) scheme by the lenders. “The OTS proposal has been rejected by the lenders,” said Sen urging the National Company Law Appellate Tribunal (NCLAT) to proceed further in the matter over the merit.

The NCLAT was hearing a petition filed by Sunil Kumar Sharma, a member of the suspended board of JAL, challenging an order of the Allahabad bench of the National Company Law Tribunal (NCLT).

After a brief hearing on Wednesday, a three-member NCLAT bench which also comprised Chairperson Justice Ashok Bhushan, directed listing of the matter on July 26 for the next hearing.