The National Company Law Tribunal (NCLT) in Hyderabad has given its approval to a significant one-time settlement plan for Gayatri Projects, marking a crucial development in the company's financial restructuring efforts.

Settlement Details

• The NCLT's Hyderabad bench has approved a ₹2,400 crore one-time settlement plan proposed by Gayatri Projects' promoters.
• This plan aims to resolve ₹8,100 crore in dues owed to lenders, led by Canara Bank.
• The promoters, including T Subbarami Reddy and his family, will be responsible for paying ₹750 crore in fund-based exposure and covering bank guarantee invocations.

Key Components of the Settlement

Timeline and Lender Approval

• The promoters have been given a 90-day window to complete the payments.
• 97% of lenders voted in favor of this settlement plan.

Current Progress

• Promoters have already deposited ₹115 crore as part of the settlement.
• The remaining payments are expected to be made through asset monetization and funds from investors.
• Seven out of 13 collateral properties will be released for sale to facilitate the settlement.

Recovery for Lenders

• This settlement represents a 30% recovery for the lenders.
• The resolution process has spanned three years.
• Previous attempts to find a buyer for the company had failed, leading to this settlement approach.

Implications

The approval of this settlement plan by the NCLT marks a significant step for Gayatri Projects in addressing its financial obligations. It provides a structured approach to resolving the company's substantial dues, offering a path forward for both the company and its lenders. The successful implementation of this plan could potentially stabilize the company's financial position and pave the way for its future operations.

As the 90-day payment window progresses, stakeholders will be closely monitoring the execution of this settlement plan, which could have broader implications for the infrastructure sector and debt resolution processes in India.

Gayatri Projects Limited has announced significant changes to its Board of Directors and key management positions, marking a substantial restructuring of the company's leadership.

New Appointments

The Board of Directors, in their recent meeting, approved several high-profile appointments:

• Mr. T. Sandeep Kumar Reddy has been appointed as the new Chairman and Managing Director of the company.
• Ms. T. Sarita Reddy joins the board as an Executive Director.
• Three new Independent Directors have been added to the board:
  • Mr. P.V. Narayana Rao
  • Mr. C.V. Rayudu
  • Mr. Srinivas Iduri
• Mr. N. Seshagiri Rao has been named as the new Chief Financial Officer (CFO) of the company.

Resignations

The restructuring also saw the departure of two key figures from the board:

• Mrs. T. Indira Reddy has resigned from her positions as Chairperson and Director.
• Mr. J. Brij Mohan Reddy has stepped down from his roles as Executive Vice Chairman and Director.

Implications and Compliance

These changes represent a significant shift in the company's leadership structure. The appointments and resignations were approved by the Board of Directors during their meeting, as disclosed in the company's filing to the stock exchanges.

Gayatri Projects Limited has stated that these changes are in compliance with Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations. The company has submitted detailed information regarding these changes to the stock exchanges as required by SEBI regulations.

This board restructuring could potentially signal a new direction for Gayatri Projects Limited, a company known for its presence in the infrastructure sector. Shareholders and market observers will likely be watching closely to see how these leadership changes might influence the company's strategy and performance in the coming months.