Essel Group lenders agree to extend the timeline.
On Wednesday in Mumbai Subhash Chandra’s Essel Group, said its lenders have unanimously agreed to extend the timeline for making pending payments. It said the extension will enable the group to optimize the value output from the sale of its assets.
The declaration has come when a portion of the mutual funds began dumping Zee Entertainment shares which were promised with them by the Essel Group as a guarantee against the loans.
On Wednesday Zee’s stock declined 2.7 percent to close at Rs 271.9 on the Bombay Stock Exchange (BSE).
Early this week, SBI Funds Management and Kotak Mutual Fund sold Zee shares in the open market. Birla Sunlife Mutual Fund, Franklin Templeton, ICICI Prudential Mutual Fund and HDFC Asset Management are the other fund houses the Essel Group owes money to nearly Rs 2,000 crore.
The Essel Group in a statement said that the timeline was requested purely in the interest of deriving the right value of the precious assets of the group. The gathering has guaranteed the lenders to reimburse their loans by further divestments, including its non-media assets
Essel Group Gets More Time.
The banks to the gathering, involving for the most part mutual funds and NBFCs, concurred in January to give it time till September 30 to locate a vital or money related financial investors in Zee and reimburse their loans worth almost Rs 9,500 crore. Essel sold 11 percent of advertisers’ stake in Zee to Invesco-Oppenheimer in July and figured out how to reimburse Rs 4,500 crore. Mutual Fund officials state Essel looked for the additional time a month ago after it turned out to be certain that it would not have the option to finish up another deal before the current week’s over.