Arcotech Ltd has secured approval from its consortium of lenders for a One Time Settlement (OTS) proposal to resolve outstanding dues and restart operations. The company's accounts had turned into Non-Performing Assets (NPAs) due to financial stress and defaults on payment obligations to banks and financial institutions. The OTS approval marks a significant step toward settling these liabilities in full and final settlement.

The secured lenders, including banks and financial institutions part of the Consortium or Joint Lenders Forum (JLF), have agreed to the OTS amount and detailed terms. This follows the company's earlier request for account restructuring, which did not materialize. The agreement allows Arcotech to settle its outstanding amount and move forward with operational plans.

As part of the settlement terms, IFCI Ltd will retain symbolic possession of the company's factory premises until the full OTS payment is completed. Arcotech expects to restart its operations soon, contingent upon fulfilling the agreed-upon payment terms. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Arcotech Limited promoter Arvind Kumar Saraf has confirmed that he and persons acting in concert did not create any new encumbrance during the financial year ended March 31, 2026. The declaration, submitted to the National Stock Exchange of India Limited and BSE Ltd., states that no direct or indirect encumbrance was made other than those already disclosed.

The disclosure was made pursuant to Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulation requires promoters to inform stock exchanges about any encumbrance on their shares held in the company.

The letter, dated April 06, 2025, was addressed to the stock exchanges for their information and record. A copy was also marked to the Arcotech Limited Audit Committee.