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MFs request Sebi to give Essel promoters time to get investors

MFs request Sebi to    give Essel promoters time to get investors

New Delhi: Mutual fund houses with an estimated Rs 8,000-crore exposure to Essel Group have asked regulator Sebi to permit them to modify the framework of Subhash Chandra-led Group's debenture trust deeds to give promoters time to rope in strategic investors, officials said.

The Essel Group, on Sunday, sealed a formal agreement with its lenders including mutual funds and non-banking finance companies (NBFCs), to get time till September to de-leverage or pare its debt.

The agreement is with those lenders who have taken pledged shares of the group flagship and listed entities, Zee Entertainment Enterprises and Dish TV India.

The group, on January 27, had confirmed that an understanding with the lenders had been achieved, which was finalised last Sunday. The agreement was not to declare the company a defaulter as it had admitted that it could service the debt only up to December.

According to officials, several mutual fund houses have approached markets regulator Sebi asking it to revise the 'terms and conditions' of Essel Group's debenture trust deeds.

The move will give the promoters time to bring in a strategic investor rather than the selling pledged shares in case of decline in the prices of the security, they added.

The debenture trust deed is a document made by the company, whereby trustees are appointed to protect the interest of debenture-holders before they are offered for public subscription. Also, it specifies the equity cover that promoters need to maintain.

PTI

PTI

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