M&A

M&A

Imagicaa Entertainment creditors may take the ARC route to sell co

Economic Times  

Creditors to Imagicaaworld Entertainment, promoted by Bollywood producer Manmohan Shetty, are rejigging the sale process of the debt-laden company to reduce regulatory clearances and possible legal hurdles. As part of the rejig, creditors have decided to order a re-bid, most likely involving an asset reconstruction company (ARC), which will purchase the debt from banks and find a buyer for the company. Imagicaa owes lenders around INR 1,020 crore and has so far received a single binding bid from Malpani Group, which has submitted an INR 5-crore bank guarantee in line with the requirements specified in the bidding document. The group has bid over INR 500 crore that includes equity stake for lenders in Imagicaa that can be encashed later.