Essel Group arrives at an understanding with lenders on servicing debt
MUMBAI: Multi-faceted business conglomerate Essel Group has said that its management has successfully arrived at an understanding with lenders which are having a pledge on shares held by the promoters.
In view of the sensitive situation triggered due to the steep fall of the stock price of Zee Entertainment Enterprises Limited and Dish TV India Limited, a detailed meeting of the Essel Group Promoters with the lending entities comprising of Mutual Funds, NBFCs and Banks was conducted.
Following the meeting, it was agreed that there will not be any event of default declared due to the steep fall in price. There will be synergy and co-operation, amongst lenders leading to a unified approach. Lenders also drew comfort from reiteration by the promoters for a speedy resolution through a strategic sale in a time-bound manner.
According to a report by The Economic Times, bonds and debentures issued worth more than Rs 8,000 crore have been issued by Essel Group companies to 150 debt mutual funds.
Another report in the pink paper stated that the Essel Group has got a three-month breather from lenders and creditors to find a buyer for half his stake in ZEEL.
Chandra on Friday issued a two-page letter claiming that “negative forces” were trying to sabotage his efforts to find a buyer. But he also apologised to investors for his strategic mistakes including buying Videocon d2h. The report noted that on Saturday, he had hectic parleys with mutual funds, NBFCs, and banks, which went way past midnight.
In a statement following the meeting with lenders, Chandra said, “I am pleased to share that we have achieved an understanding with lenders. We have always valued their immense trust and faith shown in us and today’s positive and progressive outcome of the meeting is a true example of the same. I am very positive, that we will continue to take such positive steps in rising up from the current challenging times, with the support of all stakeholders.”
Aditya Birla Sun Life AMC CEO A. Balasubramanian said, “We have always believed in the intrinsic value of Zee Entertainment and most above, the sheer value system with which its promoters function. I am very glad with the outcome of the meeting, which enabled us to arrive at a consensus in the interest of all stakeholders.”
Dish TV India CMD Jawahar Goel said, “I would like to reiterate that the merger of Videocon D2H with Dish TV has provided immense opportunity and is a great strategic fit. The synergies derived out of the merged business will significantly strengthen the results of our business. This is despite the fact that the merger transaction has been financially stretching for the promoters.”