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Ajay Piramal, Chairman of Piramal Enterprises, has expressed confidence about ZEE and Essel Group founder Chairman Subhash Chandra meeting his debt obligations.
Piramal Group has an exposure of Rs 225 crore to Essel, which is covered by collateral.
"I have never seen a statement like this. Obviously, I believe it is a very courageous statement by Subhash Chandra. If he had made such a public declaration that he will meet the liabilities, I feel confident that he will do it. There is value in his equity, and ZEE, and he says that he is willing to go all out to meet all his obligations," Piramal said.
Piramal said the loan given to Essel is a performing asset. It’s too early to say anything, he said referring to loan repayment.
Chandra on January 25 evening in an open letter, apologised to bankers, NBFCs and mutual funds for the stock crash.
He assured lenders that he would repay all loans, without giving a timeline for the repayment.
Chandra said he is trying to expedite the stake sale of the flagship media company ZEE Entertainment, to repay the lenders.
He attributed the current financial difficulties on the group to the wrong bets in the infrastructure sector, IL&FS meltdown and D2H acquisition from Videocon.
The total liabilities Subhash Chandra is said to be around Rs 11,000 crore.
ZEE Entertainment Enterprises shares plunged 33 percent intraday to hit the 44-month low of Rs 288.95 on January 25 after a media report said Essel Group's name may figure in a Serious Fraud Investigation Office (SFIO) probe linked to demonetisation-led deposits of Rs 3,000 crore.
Chandra did not mention anything on the alleged probe in his letter.
Shares of ZEE Entertainment gained 16.64 percent to close at Rs
372.50 on January 28, while the benchmark Sensex declined 1.02 percent to end 35,656.70 points.
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