Ashima signs term sheet with ARCIL for settlement of secured debt

17 Jul 2014

Ashima has signed a term sheet for settlement of secured debt, with one of its secured lenders, namely Asset Reconstruction Company (India) (ARCIL). The term sheet envisages payment of settlement amount in phases over a period of time.

As per the terms, ARCIL has rights to terminate the settlement arrangement and forfeit the amount paid by the company upon occurrence of any of the events of default listed in the term sheet. Besides, in absence of any sufficient internal accruals and the company’s net worth being negative, the financial commitments given by the company to ARCIL would require raising resources through additional debt or equity.

Further, the financial settlement with ARCIL amounts to less than 60% of the total secured debt of the company and the rest of the debt needs yet to be settled by the company.

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