Essel Group gets time till March to repay Zee debt
Amid reports that the Essel group promoter Subhash Chndra has fled the country, his son, Punit Goenka has come out in support of his father and clarified that Chandra is at home in Mumbai.
“It has been brought to my notice that certain mischief makers have insinuated that my father and our Chairman Shri @SubhashChandra has left the country. Vide this tweet, I wish to clarify straightaway, that He is very much in Mumbai at home,” tweeted Punit Goenka, CEO, Zee Entertainment, posted on Twitter.
September 30 was the deadline for Chandra and his son to repay their debt of about ₹11,000 crore. More than half of that has already been paid. The Essel group said last week that it had received another extension for the remaining amount.
“He is a fighter and a patriot, and certainly not one to run away from challenges. My message to the ones who attempted this, focus on positive things in life!” Goenka added on Twitter.
While the group did not announce the extension period, sources told BusinessLine that the repayment date has been extended by another six months till March 31, 2020.
BusinessLine had reported last Tuesday that the remaining two lenders, Kotak Mutual Fund and SBI Mutual Fund, had offloaded their pledged shares, bringing down the promoter’s debt to ₹4,000 crore from ₹5,500 crore.
Zee Entertainment had inked a standstill agreement with its lenders to extend repayment deadline to September 30. Zee has already returned about half of the ₹11,000 crore owed to lenders, but two of the lenders sold off the shares pledged with them before the deadline, knowing the group will be unable to repay on time.
The debt repayment extension is yet to receive the RBI nod and concerns remain since the RBI had raised objections over similar transactions in the past.
The Zee Entertainment stock created a new five-year low of Rs 251.60 in intra-day trade on Monday on the BSE, before closing at Rs 265.30, a 3.09 per cent decline from Friday's closing price.
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