Kohinoor Foods Limited , a prominent player in the food industry, finds itself in a complex financial situation following a recent order from the Debt Recovery Tribunal-III, Delhi. The company has been directed to pay a substantial sum to its consortium of lenders, while simultaneously navigating the intricacies of an ongoing one-time settlement (OTS) agreement.

DRT Order and Financial Obligations

The Debt Recovery Tribunal-III, Delhi, has issued an order directing Kohinoor Foods to pay INR 926.13 crores to its consortium of banks within 30 days. This order was uploaded on the DRT website, marking a significant development in the company's financial landscape.

One-Time Settlement Agreement

Prior to the DRT order, Kohinoor Foods had entered into a one-time settlement agreement with its lenders. As part of this agreement:

Current Challenges

The company now faces several challenges in managing its financial obligations:

1. DRT Order Contestation: Kohinoor Foods is in the process of contesting the DRT order with the competent authority, tribunal, or court.

2. Extension Request: The company has requested all member banks to extend the payment period for the balance amount under the OTS agreement.

3. Lender Disagreement: Two member banks among the consortium lenders have communicated their inability to proceed, citing non-compliance with the terms of the one-time settlement.

Impact on Operations

Kohinoor Foods has acknowledged that the DRT order and the ongoing settlement negotiations have material implications for its financial and operational activities. The company is actively working to resolve these issues and maintain its business continuity.

Looking Ahead

As Kohinoor Foods navigates these financial challenges, stakeholders will be closely watching how the company manages its debt obligations and maintains its operational stability. The resolution of this situation could have significant implications for the company's future in the competitive food industry landscape.

Investors and market observers are advised to keep a close eye on further developments regarding Kohinoor Foods' financial restructuring efforts and the outcome of its contestation of the DRT order.

Kohinoor Foods Limited , a prominent player in the food manufacturing and trading sector, held a significant board meeting on August 13, 2025, making several key decisions that could shape the company's future trajectory.

Financial Results Approval

The Board of Directors approved the unaudited financial results for the quarter ended June 30, 2025. While specific financial figures were not disclosed in the available information, the approval of these results marks an important step in the company's financial reporting process.

Authorized Capital Increase

In a move that could potentially strengthen the company's financial position, the Board approved an increase in authorized capital from Rs. 75.00 crores to Rs. 375.00 crores. This substantial five-fold increase is subject to shareholder approval and will require corresponding amendments to Clause V of the company's Memorandum of Association.

Annual General Meeting and Book Closure

The 36th Annual General Meeting (AGM) of Kohinoor Foods Limited has been scheduled for September 30, 2025, at 11:30 A.M. In connection with this, the company has set book closure dates from September 20 to September 30, 2025 (both days inclusive). This period is crucial for determining the list of shareholders eligible to participate in the AGM.

One Time Settlement Progress

The financial results reveal that Kohinoor Foods has entered into a One Time Settlement (OTS) with consortium banks for Rs. 227.45 crores. The company has already paid Rs. 200.00 crores, with a remaining balance of Rs. 27.45 crores due by September 27, 2025. This settlement is a significant step in addressing the company's financial obligations.

Business Operations

Kohinoor Foods Limited continues to operate in food manufacturing, trading, and marketing as a single business segment. This focus allows the company to leverage its expertise in the food industry.

Looking Ahead

The decisions made during this board meeting, particularly the increase in authorized capital and the progress on the One Time Settlement, indicate that Kohinoor Foods is taking strategic steps to strengthen its financial foundation. The upcoming AGM will provide an opportunity for shareholders to engage with the company's management and discuss these developments.

As Kohinoor Foods navigates through these changes, stakeholders will be keenly watching how these decisions impact the company's performance and market position in the competitive food industry sector.