A2Z Infra Engineering Limited has informed the Exchange about One time settlement with Indian Bank
A2ZINFRA · price
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A2Z Infra Engineering has signed a full cash One Time Settlement (OTS) with Indian Bank to resolve its outstanding debt. The total fund-based outstanding as of June 30, 2025 was INR 142.05 Cr (excluding a contingent bank guarantee liability of INR 14.40 Cr), and the company will settle this for a reduced amount of INR 50 Cr. The accounts were classified as NPA with the bank, and A2Z was acting as Corporate Guarantor for its associate companies' loans. The payment will be made in tranches: INR 4 Cr upfront, INR 9 Cr within 15 days, INR 9 Cr within 45 days, and the remaining INR 28 Cr within 90 days, with a 90-day cure period available at 12.25% interest if needed. This is part of the company's ongoing effort to reduce its overall debt burden through bilateral settlements with lenders.
This is a significant positive for shareholders as A2Z will clear a large debt obligation at roughly 35% of its value (a ~65% haircut), removing the NPA tag and freeing the company from this lender's exposure. While the company still needs to arrange INR 50 Cr in cash, the settlement ends a major liability overhang and supports its broader turnaround story.