What is the total value of Sadbhav Engineering's debt restructuring package?

The debt restructuring package for Sadbhav Engineering is valued at ₹1,517 crore.

Which entity did Sadbhav Engineering's lenders reject an offer from?

Sadbhav Engineering's lenders rejected a revised offer from the National Asset Reconstruction (NARCL).

How will Sadbhav Engineering's fund-based loans be restructured?

Fund-based loans will be restructured into convertible debentures, with a portion of interest converting into equity.

Home / Business and Economy / Lenders Choose Restructuring Over Bad Bank for Sadbhav

Lenders Choose Restructuring Over Bad Bank for Sadbhav

6 Apr

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Summary

Lenders approved a ₹1,517 crore debt restructuring package.
Sadbhav Engineering will convert loans into convertible debentures.
The company avoided an offer from the National Asset Reconstruction.

Lenders Choose Restructuring Over Bad Bank for Sadbhav

Lenders to Sadbhav Engineering have chosen to restructure the company's debt outside of insolvency courts, turning down a revised offer from NARCL. This decision came after a consortium-led resolution plan was approved by lenders representing a significant majority.

The finalized restructuring package amounts to ₹1,517 crore. This agreement, executed on March 25, 2026, involves ₹906 crore in fund-based exposure and ₹610 crore in non-fund-based limits. The plan aims to resolve stressed assets without resorting to lengthy court proceedings.