MUMBAI: AION Capital is close to acquiring a controlling stake in Manmohan Shetty-led Adlabs Entertainment Ltd, said two people with direct knowledge of the development. They said the joint venture between US-headquartered global private equity fund Apollo Global and domestic alternative assets manager ICICI Venture Funds Management Company is in talks with the Union Bank-led consortium of 13 lenders, who have a combined exposure of around Rs 1,100 crore to the cash-strapped Adlabs Entertainment. “AION Capital is negotiating with bankers to restructure debt of Adlabs Entertainment. Bankers will have to take a haircut, but it is better than having to take the company to NCLT (National Company Law Tribunal),” said one of the persons, who did not wish to be identified. Another person said that after restructuring of debt, AION Capital will end up with 75% stake in the company. Responding to a query from ET, an AION Capital spokesperson said, “We have no comments to offer to your query.” Adlabs Entertainment chairman Manmohan Shetty said that he was not aware of the development. “They (AION Capital) might be talking to the bankers. I am not privy to that information,” he said. A senior executive of Adlabs Entertainment said the company was “fully supporting” and working closely with the lenders for the resolution process. In September last year, the Tourism Finance Corporation had moved the Mumbai NCLT to recover its dues worth Rs 46 crore from the company, while state-run Corporation Bank filed an insolvency plea in June against the company to reco ver its Rs 68.84 crore loan. However, since 11 other lenders were not keen on pushing the company to insolvency, NCLT did not approve the two pleas. Later, lenders including Bank of Baroda, Indian Overseas Bank, Bank of India, Central Bank, Syndicate Bank, Punjab & Sindh Bank and Jammu & Kashmir Bank formed a consortium to find a buyer or reach an out-of-court settlement. Adlabs Entertainment, which had raised Rs 144 crore from ICICI Venture Funds Management Company in 2013 for its flagship project Adlabs Imagica, went public in 2014. The company currently owns a water park, an all-weather theme park and a snow park at Khopoli on Mumbai-Pune highway. It also operates the Novotel hotel located at a 132-acre theme park, which it was in talks to sell to DMart founder Radhakishan Damani’s Bright Star Investments for Rs 212 crore. The deal could not be completed because of some legal issues on land ownership. The company is divesting 204 acres of additional land it owns around the theme park site. Adlabs Entertainment reported total revenue of Rs 246.66 crore for 2018-19, with an EBIDTA of Rs 53.59 crore. Its net loss after tax for the period was Rs 347.4 crore. Its shares closed 4.81% up from the previous close on the BSE at Rs 4.14 apiece on Thursday.
from Economic Times https://ift.tt/2MiKnn5
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