Madras HC directs to attach Pentamedia Graphics assets

The Madras High Court has directed BSE-listed Pentamedia Graphics Ltd's shareholding in Mayajaal Entertainment and its immovable assets to attached. The direction comes inresponse to an execution petition filed by Dallah Albaraka (Ireland) Ltd, an investment arm of Dubai-based Dallah Albaraka, which moved to the Court against Pentamedia's decision to sell its holding in Mayajaal Entertainment Services, country's largest multiplex.

When contacted V Chandrasekaran, chairman & CEO, Pentamedia Graphics td said that the company has gone for an appeal, since the matter is in the court dont want to comment further.

Dallah Albaraka (Ireland) Ltd, an investment arm of Dubai-based Dallah Albaraka has filed an appeal asking the court to attach and sale of immovable property of Pentamedia Graphics and its shares, which it is holding in Mayajaal Entertainment Services, country's largest multiplex. The holding is said to be worth around Rs 75 crore.

It may be noted, Pentamedia has to owe around $13.36 million to Dallah Albarka (Ireland). Dallah Albarka advanced around $10 million under a Murabaha Trade Finance Agreement to Pentafour International Singapore Pvt Ltd, a wholly-owned subsidiary of Pentasoft Technologies Ltd, which executed an irrevocable and unconditional guarantee and indemnity deed in favour of the decree holder for the due payment of the amounts.

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

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

Following this development, the lender moved to the Court and seeked for attachment, following which the Order was passed. According to the Order, copy of which is available, it was said "on a consideration of all the contentions raised by both sides and for the reasons recorded, the Execution Petitions are ordered and warrants of attachment as prayed in EP Nos 299 and 300 of 2011 be issued, returnable in three weeks."