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Last Updated : Jan 28, 2019 08:41 AM IST | Source: Moneycontrol.com

Essel Group says have arrived at understanding with lenders

Essel Group’s management has successfully arrived at an understanding with lenders which are having a pledge on the shares held by the promoters, the group said in a release.

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Essel Group’s management has successfully arrived at an understanding with lenders which are having a pledge on the shares held by the promoters, the group said in a release.

Share prices of the group companies fell sharply in trade on Friday, amid reports sellers had sold promoters' pledged shares. Zee Entertainment fell over 26 percent.

The company, which has high debt, defaulted on some its payments, which triggered the share pledge and the subsequent share price collapse. This had led Chairman Subhash Chandra to issue an apology to lenders, and saying the company intends to pay back all of its debt.

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The promoters have previously announced they would sell stake in the flagship company Zee Entertainment.

"In view of the sensitive situation triggered due to the steep fall of the stock price of Zee Entertainment Enterprises and Dish TV, a detailed meeting of the Essel Group promoters with the lending entities comprising of mutual funds, NBFCs and banks was conducted," the release said.

"In the meeting, the lenders further showcased their belief in the intrinsic value of ZEE Entertainment and Dish TV, resulting into the following aspects:

There will not be any event of default declared due to the steep fall in price. As a result of the above, there will be synergy and co-operation, amongst lenders leading to a unified approach. Lenders drew comfort from reiteration by the promoters for a speedy resolution through a strategic sale in a timebound manner."

Essel Group Chairman Subhash Chandra, speaking on this development said, “I am pleased to share that we have achieved an understanding with lenders. We have always valued their immense trust and faith sown in us and the 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 support of all stakeholders.”

A. Balasubramanian, CEO, Aditya Birla Sun Life AMC 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.”

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First Published on Jan 27, 2019 10:02 pm
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