Settlement is better than litigation!
Once an account is declared NPA by the lender there is a need for settling the matter amicably so as to avoid unnecessary litigation and other Costs. One Time Settlement (OTS) is an opportunity for the Company to be exercised at the right time so as to avoid third party interest being created in the securities placed with the Bank.
FinLender team possesses rich experience and adequate knowledge to handle the situation while negotiating with the lender to get the desired results under OTS move.
- We broadly undertake these activities on behalf of corporate debtors being NPA, trying to settle their debt.
- We help the borrower to gain a better negotiation edge over the lender.
- Representing the group at various levels at the Bank.
- Assisting the client with the funding requirements for OTS.
- Assisting the client in cash inflow through monetizing the assets.
- Focusing on the results which helps saves everyone’s time, money and energy.
How and when the borrower should approach the Financial Institution or Bank for One Time Settlement?
In order to avail the best OTS terms, the borrower should have a better negotiation edge over the lender Financial Institution or Bank. The Lenders are not willing to offer considerable waiver under OTS when there is ample scope to recover its entire dues by way of sale of mortgaged assets. Thus, first and foremost we have to create tools which will enable us to have a better bargaining position with the Financial Institutions/ Banks.
Moreover, whenever the Economy is not performing well and Bankers are struggling with large number of NPA accounts and high degree of provisioning then it is in the interest of the Lender also to welcome the Borrower’s move for OTS.
Once the Borrower decides for One Time Settlement then it needs setting up of highly professional negotiating Desk for executing the OTS Plan.
Services to create tools within the legal framework to gain a higher bargaining position which indirectly enables the Banker to accept our offer.
Services to structure the deal which is the most important aspect of any OTS exercise.
Services to achieve the desired results under OTS are mutually beneficial to the Borrower as well as Lender as it saves time, money, and energy which is otherwise lost in initiating the recovery process and unnecessary litigation.