A one-time settlement (OTS) proposal put forward by Finvest (RFL) management has received the go-ahead from more than half of the company’s lenders. However, the deal hinges on a nod from the , the third-largest creditor to the company, which has still not signed off on the proposal as it awaits clearance from its external committee.

RFL owes more than a dozen lenders led by

a total of ₹5,344 crore. It has offered to settle these claims with a payment of ₹2,320 crore – a 57% haircut for secured creditors. The amount includes cash reserves of ₹1,700 crore in RFL parked in the escrow account with banks and the rest will be infused by parent Religare Enterprises (REL), people familiar with the plan said.

“The deal envisages ₹2,150 crore to secured creditors, ₹80 crore to the provident fund trust of the employees and a 20% recovery for unsecured creditors. More than 51% of the secured creditors have already approved the plan and each day more are joining,” said a person familiar with the deal.

It also includes a payment of at least ₹500 crore after six years from the possible settlement of RFL’s dispute with the erstwhile Lakshmi , which had taken over deposits from the company to settle loans taken by the previous promoters.



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