NEW DELHI: Diversified conglomerate Essel Group on Sunday announced that it has finalised an understanding reached with its lenders last week where the latter agreed not to declare any default until September 30, 2019, if caused by movement of stock prices of group firms.
Several of the group’s key stocks, including Zee Entertainment Enterprises, dived last Friday after reports of an alleged probe by government agencies. However, stocks rebounded on Monday after the announcement of the agreement between the group’s lenders and the promoters.
Now, this agreement has been finalised with formal consent secured from lenders, said Essel. “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,” said the statement.
Essel also said that it had reiterated to its lenders that “within the mentioned time frame a complete resolution will be achieved, leveraging the stake sale process”.
“I am glad about the formal consent of lenders. For us, while their assurance given last week 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,” said Subhash Chandra, chairman, Essel Group.