Date:14/09/2005 URL: http://www.thehindubusinessline.com/2005/09/14/stories/2005091402590200.htm

Back Kothari Sugars settles dues to lenders

Our Bureau

Chennai , Sept. 13

KOTHARI Sugars and Chemicals Ltd has paid Rs 85.60 crore to its lenders to settle its dues to the institutions. The Chennai Debts Recovery Tribunal - I facilitated the compromise settlement between the company and its lenders.

According to a press release from the tribunal, a consortium of banks led by State Bank of India filed a suit against Kothari Sugars for an amount of Rs 91.80 crore and IFCI Ltd filed another suit to recover Rs 23.96 crore.

The amount paid by the company was in full and final settlement of the two cases, according to the release. Out of the amount paid, State Bank of India got Rs 34.41 crore, Corporation Bank Rs 18.51 crore, Bank of Baroda Rs 16.04 crore, State Bank of Travancore Rs 8.93 crore and IFCI Rs 7.71 crore.

The release said that this was the highest recovery ever made in a single case of settlement by the tribunal this calendar year. With this, the total recovery of debts by the tribunal for the year has reached Rs 170 crore.