Ashima has signed a term sheet for settlement of secured debt with the Asset Reconstruction Company (India) Ltd. It envisages payment of settlement amount in phases. According to the terms, ARCIL has the right 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. In the 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. The financial settlement with ARCIL amounts to less than 60 per cent of the total secured debt of the company and the rest of the debt needs to be settled by the company.
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