Lenders agree there will not be any event of default declared till September 30, 2019
After arriving at a successful understanding with its lenders on January 27, 2019, the management of Essel Group has now secured a formal consent from them.
In a statement issued post the second round of meeting with the lending entities, the Essel Group management said on Sunday that lenders having a pledge on the shares held by the promoters in ZEE Entertainment Enterprises Ltd (ZEEL) and Dish TV India Ltd (Dish TV), have agreed that there will not be any event of default declared till September 30, 2019.
Subhash Chandra, chairman, Essel Group, 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."
As per the consent, the lenders have agreed that there will not be any event of default declared till September 30, 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 group of lenders, including mutual funds, non-banking financial companies 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," the Essel Group management said in a statement.
REACHING AGREEMENT
- Lenders agree there will not be any event of default declared till September 30, 2019
- They expressed their firm stance to support the management of Essel Group
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