Officials with FIs and banks say the lenders have asked the promoters of the company to infuse Rs 20 crore immediately and the remaining amount within a span of six years. S Kumars Nationwide has a debt profile of around Rs 1,000 crore, of which Rs 600 crore is long-term debt and Rs 400 crore liabilities.

S Kumars Nationwide officials decline to comment on the development. The FI officials, however, say: "Besides this, we have asked the promoters of the company to pledge some part of their shares of the company with the lenders and to open a trust retention account, which will help us to prevent any diversion of funds to other than the companies'' normal business operations."

The FI officials add that during the last corporate debt restructuring meeting held in July last week, the promoters of the company had, in principal, accepted all the conditions put forward by the lenders. "Once the conditions are fulfilled, the credit deposit ratio proposal for S Kumars Nationwide will be completed without any delay."

Leading financial institutions like Industrial Development Bank of India, Industrial Financial Corporation of India and banks like Bank of India, Federal Bank, Exim Bank, United Western Bank, Bank of Baroda, J&K Bank, State Bank of Indore, Indian Bank and Life Insurance Corporation of India are the main lender to S Kumar Nationwide.

In the meantime, the FIs officials say the promoter group of Mukand Ltd, the Rahul Bajaj and Viren Shah families, has agreed to the FI''s demand to pledge shares of the Bajaj group flagship, Bajaj Auto, worth Rs 50 crore (at market value) with them as part of the Rs 1,300-crore corporate debt restructuring scheme of the company.

This is in lieu of the lenders'' demand of providing personal guarantees. In addition, the promoters will also bring in Rs 50 crore as fresh equity.

They also agreed to the sale of some of the company''s unutilised assets, including freehold land, to ensure that the company''s working capital needs are met, sources close to the development say.