Mutual funds grant more time to Essel Group for repayment of the loan
On Wednesday Subhash Chandra lead of Essel Group said Mutual Funds from which it has borrowed money have unanimously decided to grant it more time for repayments.
Few fund houses selling their holdings in the company ahead of the September 30 deadline. The fund houses had an outstanding of over Rs 11,000 crore from Essel Group and had done the remarkable in conceding it more opportunity to reimburse even notwithstanding huge remedies in the offer costs of Zee Entertainment Enterprises, their core security.
Lenders have collectively consented to expand the timeline, empowering the Group to enhance the worth yield from the sale of its assets, a statement from the group said.
The mentioned extension of the timeline was requested purely in the interest deriving the right value of the precious assets of the Group, it added.
The advertiser had acquired the cash for different organizations including foundation, roads, and power, by vowing their possessions of ZEEL. A greater part of these bets went awry and the liquidity crisis made by the breakdown of IL&FS made it hard to renegotiate the debt.
At the same time, bears battered the ZEEL scrip also, setting off an interesting circumstance where the estimation of the security held by the lender went down. Even with the issues, and with the end goal of securing the worth, almost the dozen Mutual Funds chose to give Essel additional time.
The sell-off in the ZEEL shares was termed as sabotage by the promoters.
According to the information said by a source, the mutual fund houses were divided over the issue of granting more time to Chandra.
Another report also named Kotak Mutual Fund as having sold stakes in the company recently.
It may be noticed very well that till now, the promoters have sold their ZEEL property in two tranches to raise over Rs 4,000 crore. They have likewise signed a deal with Adani Energy to sell solar assets for Rs 1,300 crore.
According to the information said by a source, the Essel Group has made some part payments to its creditors as the money from the stake sales started flowing in.
On Wednesday as against a 1.29 percent correction in the benchmark, the ZEEL scrip closed 2.65 percent down at Rs 271.90 apiece on the Bombay Stock Market(BSE).