INSUBCONTINENT EXCLUSIVE:
New facts have emerged at the recent lenders meeting organised with Zee management
It has emerged that promoters loans directly or indirectly against the security of their listed Zee Entertainment shares stand at over Rs
13,000 crore, adding to the group's liability.
The break-up is: Mutual Funds Rs 7,000 crore; NBFCs/Banks Rs 4,000 crore; Offshore lenders Rs
2,000 crore.
As per stock exchange filings, three Mauritius-based entities in the promoter group hold 12.5 per cent stake in Zee
They are Essel Media Ventures Ltd 10.7 per cent, Essel holdings 0.2 per cent and Ease International 1.5 per cent, all of them forming part
of promoter holding of 41.6 per cent.
As per the filings, these Mauritius entities-held shares are unencumbered but promoters have told
Indian lenders the same are not available for being provided as security for Indian lenders.
Hence, the current Zee Ent security value to
Indian lenders is Rs 9,000 crore against loans Rs 11,000 crore - which is obviously a huge deficit.
The Mauritius-held shares are directly
or indirectly providing security for Rs 2,000 crore offshore loans raised by promoters in the past.
No stock exchange disclosure has been
made on any encumbrances/restrictions on Mauritius held shares but the same are clearly restricted in some manner - else it is unthinkable
that Indian lenders facing a huge shortfall in security cover would not demand these additional shares to make up the cover.
Annual interest
liability on loans against promoters' shares is at over Rs 1,100 crore for which there is no apparent source for payment other than Zee
Entertainment cash flows.
