PC Jeweller receives loan recall notices from four more banks
1 min read . Updated: 07 Feb 2023, 05:25 PM IST
Premium- The company is already engaged in a legal battle with consortium lender State Bank of India
PC Jeweller on Tuesday informed the stock exchanges that it has received loan recall notices from four lenders – IDBI Bank, Indian Bank, Bank of India and Karur Vysya Bank. These banks are part of the consortium lending to the Delhi-based company.
PC Jeweller is already engaged in a legal battle with consortium lender State Bank of India.
In a regulatory filing, PC Jeweller said SBI has initiated recovery proceedings against the company and the matter is now pending before the Debt Recovery Appellate Tribunal (DRAT).
The case filed by SBI was listed before DRAT today and the court has fixed the next date of hearing on 28 February, it added.
"We refer to our earlier intimation dated February 3, 2023 in regard to the captioned subject and submit that the legal proceedings between State Bank oflndia ('Lead Bank') and the Company are continuing and in the hearing held today i.e. February 7, 2023, the Hon'ble DRAT has fixed February 28, 2023 as the next date of hearing," the jewellery company said in a regulatory filing.
"We also submit that the four other banks of the Consortium, namely IDBI Bank, Indian Bank, Bank of 1ndia as well as Karur Vysya Bank have also issued their loan recall notices to the Company," it added.
Meanwhile, the company said that all it's showrooms except three, namely, Preet Vihar, Pitampura and Kingsway Camp (all in Delhi) are operational.
Last year in October, PC Jeweller said that it has defaulted on ₹3,466.28-crore loan facilities from banks and financial institutions for the second quarter. In a stock exchange filing, the company said the total loan amount outstanding as on date was ₹3,466.28 crore and that was the amount of default for Q2.
According to the company's Q2 annual report, lenders are SBI, Punjab National Bank, Union Bank of India, Axis Bank, Kotak Mahindra Bank and Induslnd Bank.
Shares of the company closed 4.98 per cent down at ₹39.15 apiece on BSE on Tuesday.
