Full Circle Victory: PTC India Financial Services Bags Entire ₹1.25 Billion in Stressed Loan Win

PTC India Financial Services Ltd (PFS) has achieved a significant milestone by successfully recovering its entire outstanding share of ₹1.25 billion under an approved resolution plan, marking a major victory in the company’s efforts to resolve stressed loan accounts.

 

Key Highlights:

 

Full Recovery of Dues: PFS, which had advanced a loan of ₹1.25 billion to NSL Nagapatnam Power and Infratech Limited, has now received the full amount owed under the resolution plan. This recovery follows a protracted legal and insolvency process, including the invocation of pledged dematerialized shares and multiple rounds of litigation before the National Company Law Tribunal (NCLT) and higher courts.

 

Resolution Plan Details: The approved restructuring plan, aligned with RBI guidelines and NCLT directives, involved a combination of structured repayments and non-convertible debentures for the unsustainable portion of the loan. The sustainable portion is being repaid in quarterly installments, while the unsustainable portion will be redeemed in future tranches, ensuring long-term financial discipline for the borrower.

 

Legal Endorsement: The resolution plan was challenged in court, but both the NCLT and the Telangana High Court upheld the process, reinforcing the supremacy of the Insolvency and Bankruptcy Code (IBC) in such matters. The courts dismissed objections to the plan, emphasizing that once insolvency proceedings are underway, the IBC framework takes precedence over other settlement mechanisms.

 

Positive Impact: This full recovery strengthens PFS’s balance sheet, boosts investor confidence, and sets a benchmark for effective resolution of stressed assets in India’s financial sector.

 

Sources: LiveLaw, Business Standard, Nishith Desai Associates