One time settlement (OTS) proposal was submitted by Religare Finvest (RFL) management has got green signal from more than half of the company’s lenders. However, the deal hinges on the approval of the company’s third-largest creditor, which has still not signed the proposal as it awaits approval from its external committee.

Over a dozen lenders dues led by RFL

Total ₹5,344 crore. It has offered to settle these claims with a payment of ₹2,320 crore – a 57% haircut for secured creditors. This amount includes cash reserves of ₹1,700 crore in RFLs in banks’ escrow account and the balance will be put in by the parent (REL), people familiar with the scheme said.

“The deal envisages recovery of ₹2,150 crore to secured creditors, ₹80 crore to Employees’ Provident Fund Trust and 20% for unsecured creditors. More than 51% of secured creditors have already approved the scheme and More are joining each day, said a person familiar with the deal.

This also includes a payment of at least ₹500 crore after six years from the likely settlement of RFL’s dispute with the erstwhile Lakshmi, which had taken deposits from the company to settle loans taken by previous promoters.