One Time Settlement for Textile Company in Financial Distress - Westlab Consultancy Services

One Time Settlement for Textile Company in Financial Distress

About the Client

A medium-sized textile manufacturing company facing financial distress

Challenges

Lack of bank funding, inexperienced management, inability to secure capital infusion, and sudden demise of the promoter, resulted in the Company slipping into the Non-Performing Asset (NPA) category.

Deal Objective

To proactively arrange One Time Settlement (OTS) so that our client could effectively resolve its outstanding dues and restructure debt obligations.

Background

WCSPL conducted a comprehensive assessment of the client’s financial position, including an analysis of its assets, liabilities, cash flow projections, and debt repayment capacity.

We engaged in negotiations with creditors, including banks, financial institutions, and trade suppliers, to reach a mutually agreeable settlement that addressed the Company’s outstanding liabilities while providing relief to creditors.

We developed a detailed settlement plan and obtained approval for OTS from the authorities.

We also prepared the necessary documents required for settlement purposes, ensuring legal and regulatory requirements.

The Business Accruals also will be available to meet the Working Capital Requirements, including Interest expenses and Future Loan Repayments.