VTB Capital has got the right to sell the 10.71 percent stake held by Essel Media in Zee Entertainment Enterprises.
"Pursuant to the rights under the loan facility, and upon instruction from the lenders, VTBC has acquired the right to direct the disposal of 10.71 percent stake in the Target Company held by Essel Media Ventures on October 11, 2019, and this disclosure is being made accordingly. We have made consequent clarificatory changes to the form," the investment arm of Russia’ VTB Group said in a BSE filing on October 16.
This has been done with an aim to secure lenders’ interests in keeping with the terms of the financing arrangement. Clarifying further, the company said the face value of the share is Re 1, and not Rs 10, as was mentioned earlier.
On October 14, VTB had said that it had enforced certain security rights granted to lenders in order to protect their interests in accordance with the terms of the financing arrangement.
Essel Media, a subsidiary of Subhash Chandra's cash-strapped Essel Group, had a 10.71 percent stake in Zee Entertainment. In 2017, it had created a pledge on its 10.71 percent stake in Zee, in favour of VTB Capital.
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