Essel Group enters into an agreement with lenders

Multi-faceted business conglomerate Essel Group's management on Sunday said to have "successfully arrived at an understanding with lenders which are having a pledge on shares held by the promoters."

"In view of the sensitive situation triggered due to the steep fall of the stock price of ZEE Entertainment Enterprises Ltd and Dish TV Ltd, a detailed meeting of the Essel Group promoters with the lending entities comprising of mutual funds, NBFCs and banks was conducted," said the Group in a statement.

"In the meeting, the lenders further showcased their belief in the intrinsic value of ZEE Entertainment and Dish TV," said the statement, adding that "there will not be any event of default declared due to the steep fall in price" and "there will be synergy and co-operation, amongst lenders leading to a unified approach."

"Lenders drew comfort from reiteration by the promoters for a speedy resolution through a strategic sale in a time-bound manner," said the Group in the statement.

Essel Group Chairman Subhash Chandra, speaking on this development, said: "I am pleased to share that we have achieved an understanding with lenders. We have always valued their immense trust and faith sown in us and the positive and progressive outcome of the meeting is a true example of the same."

"I am very positive that we will continue to take such positive steps in rising up from the current challenging times, with the support of all stakeholders," the statement quoted Chandra, as adding.

A Balasubramanian, EO, Aditya Birla Sun Life AMC, said: "We have always believed in the intrinsic value of ZEE Entertainment and most above, the sheer value system with which its promoters function."

"I am very glad with the outcome of the meeting, which enabled us to arrive at a consensus, in the interest of all stakeholders," the statement quoted Balasubramanian, as adding.