Lok Adalat helps settle huge corporate debt

In one of the rare instances of a huge corporate debt being settled through the Lok Adalat, city-based Pentamedia Graphics Ltd. entered into a one-time settlement with its US creditor. Under the settlement, the company would pay $ 1.10 m. to the Export Import Bank of the U.S. The outstanding debt was of $ 6.81 million as on June 6, 2008, of which the principal was $ 5.11 million. Interest on the total debt was accuring at the rate of $931 per day. The bank had taken legal action against Pentamedia Graphics Ltd. for non-payment of the dues in time. The matter was taken up with the consent of the parties before the Lok Adalat conducted by the State Legal Services Authority.

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