Lenders object to Pentamedia stock sale in Mayajaal

Dallah Albaraka (Ireland) Ltd, an investment arm of Dubai-based Dallah Albaraka, has moved the Company Law Board, against BSE-listed Pentamedia Graphics Ltd’s plan to sell its holding in Mayajaal Entertainment Services. The holding is said to be worth Rs 75 crore.

In September 2011, Pentamedia Graphics said it was planning to exit from Mayajaal Entertainment Ltd, which owns over 30 acre of property near here. This comes after Mayajaal decided to join hands with real estate firms to develop a Rs 300-crore villa project and also other real estate projects at the site.

Pentamedia picked up a 48 per cent stake in Mayajaal in 2004 with an investment of Rs 38-40 crore. According to market sources, the company is likely to exit with Rs 70-75 crore. B Udeep, managing director, Mayajaal, is the son-in-law of V Chandrasekaran, chairman & CEO, Pentamedia Graphics Ltd.

In its petition, Dallah Albaraka (Ireland) had sought an order of injunction restraining Pentamedia Graphics from encumbering, alienating or in any manner from dealing with the shares in Mayajaal and Num TV Ltd.

According to Dallah Albaraka’s petition, Pentamedia Graphics has to pay Rs 60.46 crore to Dallah Albaraka (Ireland) Ltd, from which Pentamedia borrowed $10 million. The Dubai-based firm has alleged that Pentamedia borrowed the money by showing fraudulent, non-existent contacts, which are not even reflected on the company's balance sheet. This was said in the petition, based on the findings of High Court of Justice, Queen’s Bench Division, Commercial Court, England & Wales.

The lender has asked the court to attach the shares held by Pentamedia in Mayajaal Entertainment and Num TV Ltd.

The Company Law Board on Friday reserved its order.

Mayajaal Entertainment Ltd operates 14 screens, which makes it the country’s largest multiplex. It is planning to expand to 16 before Christmas. The company is also planning to convert its 40-room resort into a 120-room high-end SPA resort.