NEW DELHI : Drug firm Panacea Biotec on Tuesday said SBI-led consortium of lenders has approved a one-time settlement plan to clear outstanding dues.

"All consortium lenders have approved the bilateral one-time settlement (OTS) at 65 per cent of their outstanding debts," Panacea Biotec said in a filing to the BSE.

The settlement has been done to resolve the current debt position of the company, it added.

On Monday, India Resurgence Fund, promoted by Piramal Enterprises and Bain Capital Credit, along with its associates had announced an investment of up to 992 crore in Panacea Biotec.

"The investment proceeds will be used for a one-time settlement with existing lenders, general working capital and growth requirements of the company," India RF and Panacea Biotec had said in a joint statement.

In February 2019, Panacea Biotec in a regulatory filing had said its board had approved raising up to 864 crore for a OTS with its lenders and other purposes.

The company had said it would raise the funds through the issue of non-convertible debentures on a private placement basis.

The capital once raised would be utilised by the company for a OTS with the consortium of lenders and for the settlement of stretched payables, employees' dues and for working capital requirements, among others, it had added.

In another regulatory filing on February 27, Panacea Biotec had said the lead bank of the consortium lenders, State Bank of India (SBI), has approved the OTS at about 65 per cent of their outstanding as on July 31, 2018.

It had added that the OTS with the other members of the consortium was in progress in line with the sanction from SBI.

Shares of Panacea Biotec Tuesday closed at 200.45 per scrip on the BSE, up 10.65 per cent from its previous close.

This story has been published from a wire agency feed without modifications to the text.

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