Exim Bank issues possession notice related to financial assistance to Mediaone Global Entertainment

Latha Rajinikanth was a guarantor for Mediaone Global, a company which produced Kochadaiiyaan

Exim Bank has issued a possession notice taking a the 2.13 acre property related to non payment of a financial assistance extended to film company Mediaone Global Entertainment Ltd, for whic Latha Rajinikanth, wife of Superstar Rajinikanth, was the guarantor. The company which produced Kochadaiiyaan, an animated movie directed by the Superstar's daughter Soundarya Rajinikanth with the avatar of Rajinikanth and Deepika Padukone in the lead role, have failed to pay Rs 22.21 crore to Exim Bank, according to the notice.

Mediaone Global Entertainment, a listed company, said that the company is in the process of clearing the loan on or before March 31, 2015 and "the act of Exim Bank to call upon Guarantors Latha Rajinikanth and Devender C R to repay the loan, when the principal borrower is making arrangements to repay is not warranted."

According to the notice issued by Exim Bank, the Bank has issued a demand notice on September 15, 2014, calling upon Latha Rajinikanth to repay the amount of Rs 22.22 crore due as on July 17, 2014 together with further interest and liquidated damages as per contractual rates and other expenses thereon with effect from July 18, 2014 till payment, within 60 days from receipt of the notice. The notice says Latha Rajinikanth is a borrower within the meaning of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) Act, 2002, being the guarantor for the financial assistance granted to Mediaone Global Entertainment.

"The Borrower having failed to repay the above referred amount of Rs 22.21 crore to Exim Bank, notice is hereby given to the Borrower in particular and to the public in general that the undersigned has taken possession of the property/asset described herein below in exercise of powers conferred on them on December 23, 2014 on behalf of Exim Bank," it said. It added that all the piece and parcel of property in Padappai, Sriperumbudur, "totaling Acre 2.13 cents together with structures thereon or to be erected thereon," as the description of the property.

Mediaone Global Entertainment, which has been in the business of production, distribution and exhibition for the last 10 years, said that it has borrowed Rs 20 crore from Exim Bank and has its own capacity and business to repay the loan.

"Infact the company is in the process of clearing the Loan on or before March 31, 2015 and had various discussions with officials of Exim Bank in December 2014 to settle the matter," it said.

It may be noted that the company produced Kochadaiiyaan, an animated movie which saw a budget of around Rs 125 crore according to the industry sources. The movie, which was made using motion capture technology with technical expertise from UK and US and was released in various languages across the world. Reports say that the movie did not perform well enough in the boxoffice and some of the distributors even refuses to call it a Rajinikanth movie, since it was an animation movie.