New Delhi, April 4 Himalaya Food International on Saturday said a consortium of lenders, led by State Bank of India, has approved its proposal for extending its One Time Settlement (OTS) scheme until September 2026.
"This development significantly reduces the Company's financial risk and marks the beginning of a high-growth recovery phase," Himalaya Food International, the country's largest frozen and canned food processing company, said in a statement.
This extension paves the way for asset monetization, capital infusion through rights issues or preferential shares, and the expansion of export-driven business verticals, it said.
According to the company, out of the final settlement of Rs 43 crore, half of that, which is Rs 21.50 crore, has already been deposited.
It has paid Rs 77 crore so far and expects the remaining Rs 21.50 crore to be fully recovered within the approved timeline.
Despite setbacks due to the non-return of critical machinery by the JV partner and the impact of fire at the Gujarat facility, the company continued to fulfill its obligations.
Commenting on the development, its Chairman & CEO Man Mohan Malik said this approval for extending the OTS represents a defining moment for Himalaya.
"We have already demonstrated our intent and capability by paying Rs 77 crore, including Rs 21.50 crore under the revised OTS. With the extension now in place, the path to full closure is clear, visible, and fully achievable," he said.
Himalaya Food is entering a phase where financial restructuring is aligning with operational momentum, creating a powerful platform for accelerated growth and value creation, he said.