Essel Group given until September-end to clear debts

Essel Group has been given until the end of September to clear its debts, it was announced today.

Management at the group said it had secured a formal consent with lenders, which are having a pledge on shares held by the promoters in ZEE Entertainment Enterprises Limited and Dish TV India Limited.

In its official statement issued last week, dated 27th January 2019, the Group had earlier confirmed that an understanding with the lenders was achieved, and the same has been finalized today. During the second round of a detailed meeting held between Essel Group Promoters and lending entities, the belief and trust in the intrinsic value of the Group’s assets and its promoters’ earnest intention towards complete repayment, was again showcased and reinforced by all the lenders.

As per the consent, the lenders have agreed that there will not be any event of default declared till 30th September 2019, due to the movement in the stock price of Essel Group’s mentioned listed corporate entities. This consent provides the required amount of time for the Group’s management, to complete the strategic sale process of its key assets without any compromise on the value. During the meeting, the management of Essel Group once again reassured the lending entities, that within the mentioned time frame a complete resolution will be achieved, leveraging the stake sale process. The lenders have showcased complete co-operation and have agreed to support Essel Group’s management, together as one team.

Chairman of Essel Group, Shri. Subhash Chandra, speaking on this development said, “I am glad that the formal consent with the lenders has been achieved. For us, while their assurance given last week itself was more than enough, the formal consent seals and justifies their belief and trust in us and the intrinsic value of our assets. As one team, we are now positively focused on completing the strategic sale process, with the esteemed support of our lenders. We thank them for their trust, patience and most above for their complete co-operation extended, enabling us to take the next steps towards resolution”.

The group of lenders, including MF & NBFCs, expressed their firm stance, to support the management of Essel Group. Reaffirming their belief in the promoters’ expertise, experience and earnest efforts towards generating value for their stakeholders, the lenders were extremely confident that within the mentioned time frame, a positive outcome will be achieved.