Union Bank Holds Adlabs Bids Till Sept 17

Union Bank Holds Adlabs Bids Till Sept 17

Mumbai: The Union Bank of India-led consortium has postponed the financial bids invitation for Adlabs Entertainment loan auction till September 17.

"The financial bids receipt date has been postponed to the next week and the tentative date is September 17," sources said.

While the last date for submission of expressions of interest (EoIs) was 21 August, financial bids were to be submitted through an e-auction, to be conducted on 12 September, which now has been postponed to next week.

On Tuesday, Adlabs had said there had been good response to the auction of its loans undertaken by a lenders' consortium.

The consortium of lenders to Adlabs is looking to sell its entire Rs 1,200 crore exposure and has appointed BDO India to seek expressions of interest (EoIs) from interested buyers.

"The process of auction of loans is being managed by an independent advisor. We don't have an update on the latest status. But we do understand there has been a good response so far. We continue to extend full support to our lenders for an early resolution outside of NCLT", Dhimant Bakshi, Joint CEO, Adlabs Entertainment, had told IANS.

The company became a non-performing asset (NPA) in June 2018. In its FY19 annual report, the company said it was working towards reducing debt to manageable levels.

In a statement to the stock exchanges on June 7, Adlabs said, "The company has received a notice from the National Company Law Tribunal (NCLT), Mumbai bench, on June 7, 2019 via an email, regarding an application filed by one of the financial creditors of the company -- Corporation Bank -- to initiate the corporate insolvency resolution process under section 7 of Insolvency and Bankruptcy Code (IBC)."

Corporation Bank referred the company to the NCLT for a default of Rs 68.84 crore.

The company has also proposed to sell non-core assets, which will form part of the overall resolution and various financing, and discussions with asset reconstruction companies have been explored along with lenders.

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Source: IANS