PC Jeweller Clears Another Bank Loan, Nears Debt-Free Status
PC Jeweller has repaid nine of 14 consortium banks and cleared over 96 percent of dues to the other five, putting it on course to become debt-free in September.
PC Jeweller has repaid nine of 14 consortium banks and cleared over 96 percent of dues. |
New Delhi: PC Jeweller Ltd has repaid all outstanding dues to one more lender under its one-time settlement agreement, bringing the jewellery retailer closer to becoming debt-free this month.
The company said in a regulatory filing that it has now cleared the entire outstanding debt owed to nine of the 14 banks in its lending consortium. All these repayments were completed before their scheduled due dates.
Debt Repayment Nears Completion
PC Jeweller has also repaid more than 96 percent of the money owed to the remaining five banks. Less than 4 percent of the total settled debt is now pending.
The company expects to pay this balance during September and achieve debt-free status. It said the completion of the repayment plan would significantly improve its balance sheet and strengthen its overall financial position.
The latest repayment marks another important step in PC Jeweller’s efforts to reduce debt and move beyond its stressed loan burden. Early repayments also show that the company is progressing faster than the timetable agreed with its lenders.
Settlement Covered Rs 4,100 Crore Debt
PC Jeweller signed the settlement agreement with a consortium of 14 banks on September 30, 2024. State Bank of India leads the group of lenders.
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The one-time settlement was designed to resolve the company’s stressed loan account, which stood at nearly Rs 4,100 crore as of March 2024. Under the agreement, the company has been making payments to individual banks and gradually reducing its total outstanding debt.
This would allow the retailer to focus more closely on operations and growth.
Apart from State Bank of India, the consortium includes Union Bank of India, Punjab National Bank, Axis Bank, IndusInd Bank, Bank of India, IDBI Bank, Karur Vysya Bank and Kotak Mahindra Bank.
The remaining members are Indian Overseas Bank, Canara Bank, Indian Bank, Bank of Baroda and IDFC First Bank. Once the final amount is cleared, PC Jeweller will complete its settlement obligations to all 14 banks.
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