Imagicaaworld Entertainment board nods resolution plan with Malpani Group as anchor investor

12 May 2022 , 09:17 AM

Imagicaaworld Entertainment Limited, Board of Directors in their meeting held on Wednesday have approved the preferential issue as part of the resolution plan agreed by the lenders under the RBI Prudential Framework.

It was informed on May 7 2022, that the Lenders of the Imagicaaworld Entertainment Limited (“Company”) had pursuant to a Bid Document dated August 30, 2021 undertook an open bidding process to solicit binding bids from eligible entities/bidder(s) for assignment/one-time settlement of the debt obligations of the Company in accordance with the requirements of the Reserve Bank of India (Prudential Framework for Resolution of Stressed Assets) Directions, 2019.

As a part of this process, Malpani Parks Private Limited (“MPPL” or “Acquirer”) had submitted its resolution plan/offer (as amended/modified from time to time) towards resolution of debt obligations to the Lenders of the Company along with change in management and control of the Company in accordance with the requirements of the RBI Prudential Framework (“Resolution Plan”).

The Lenders have accorded their unanimous in-principle approval to the Resolution Plan and have declared the Resolution Plan submitted by MPPL and its nominees as the “Anchor Offer” for undertaking the “Swiss Challenge bid process” in terms of the RBI Prudential Framework.

Union Bank of India (acting on behalf of all the Lenders) has instructed the Company and the promoters of the Company vide its email dated May 6, 2022 to undertake all the necessary steps/ actions that may be required for the smooth implementation of the Resolution Plan and to extend requisite support to MPPL to ensure that the Resolution Plan is implemented in a timely manner.

The key terms of the Resolution Plan submitted by MPPL are as enclosed. It holistically addresses the resolution of all debt obligations of the company outstanding with the Lenders.

Considering all of the above, the Board of Directors of the Company in their meeting held today (May 11, 2022) have considered the following:

1. Preferential allotment of 27,14,19,228 equity shares at Rs15.29 per share including share premium amounting to Rs415 crore
2. Issue and allot equity shares of 4,90,51,667 equity shares at Rs15.29 per share including share premium amounting to Rs75 crore as part conversion of their loan into equity
3. Subject to completion of assignment of the debt by the lenders of the company to Aditya Birla ARC Ltd. as stated in the Resolution Plan, issue 4,80,00,000 redeemable preference shares of face value of Rs100 each amounting to Rs480 crore with twenty-year maturity and 0.01% p.a. coupon rate to the ARC as part conversion of the assigned debt

IMAP India acted as strategic and financial advisor to the Company and DSK Legal acted as legal advisor to the Company for the above-mentioned transactions.

At around 9:17 AM, Imagicaaworld Entertainment was trading at Rs15.31 per piece lower by 1.23% on the BSE.