PC Jewellers Receives PNB Approval for One-Time Settlement of Dues, ET Retail

PC Jeweller Ltd on Sunday said Punjab National Bank has given its consent for a one-time settlement of outstanding dues. In a regulatory approval, PC Jeweller said, “Punjab National Bank, the third largest bank after State Bank of India among the company’s consortium banks in terms of exposure, has given its consent to the one-time settlement (OTS) proposal made by the company.” PC Jeweller has opted for OTS to settle outstanding dues from the consortium of banks.

The terms of the approved OTS include cash and equity components payable in settlement, release of securities and mortgaged properties etc, the filing said.

PC Jeweller did not mention any outstanding dues to any banks or any details of OTS.

During an investor presentation in late May, PC Jeweller mentioned that the withdrawal of its petition from the National Company Law Tribunal (NCLT) by SBI and the favourable consideration of its OTS proposal by banks were positive developments.

“The company has resumed its focus on increasing its brand presence and has launched marketing activities in this area, which have brought visible results in the current quarter,” the company said.

As of March 31, 2024, the Company continued to maintain an extensive network of 60 showrooms (including 6 franchise showrooms) located across 44 cities across 15 states in India.

“Furthermore, the Company’s core strengths in terms of manufacturing and design capabilities, manufacturing facilities, skilled workforce, interpersonal skills in the form of systems and procedures, customer policies, etc. remain intact,” PC Jeweller said.

According to the presentation, the company is also reorganizing all other aspects of its business, such as preparations for the launch of new jewelry collections, reorganization of franchise operations, cost optimization, etc.