14 August 2019: Union Bank of India (UBI) on Tuesday sought expressions of interest (EoIs) for consortium loans worth Rs 1,212 crore to Adlabs Entertainment, as plans to resolve the account outside the insolvency courts are understood to have lapsed. BDO is handling the sale process on behalf of lenders.
“A consortium of lenders, led by Union Bank of India (“Lender Consortium”), of an entertainment company (“Company”), is proposing to sell its debt exposure in the Company as per the terms and conditions contained herein,” UBI said in a bid document. Offers on a 100% cash basis have been invited from interested parties. “The sale of the debt exposure as set out herein is proposed on an ‘as is where is’ basis, without recourse to the Lender Consortium and shall be subject to the applicable regulations of the Reserve Bank of India,” the bank added.
In response to a query from FE, Adlabs said it is supporting banks’ efforts at resolution. “We are fully supporting lenders in resolving our debt outside of NCLT. The proposed process will serve the objective of price discovery through transparent bidding,” said Dhimant Bakshi, joint CEO, Adlabs Entertainment.
For bidders to be eligible, their consolidated net worth as per the latest audited financial statement should be at least Rs 50 crore. Net worth of a body corporate will be the total of equity share capital and reserves and surplus/other equity, excluding any revaluation reserve as at March 31, 2018 or the latest available statement. For firms, limited liability partnerships and other eligible investors, the net worth must be at least Rs 50 crore. Investors would be permitted to invest through SPVs or other permissible modes.
Asset reconstruction companies (ARCs) who apply should be registered with the RBI to be eligible. Their committed funds or assets under management should be at least Rs 500 crore in the immediately preceding completed financial year but not earlier than March 31, 2018. For a consortium of investors, any one of the partners should meet any one of the above conditions.