Lenders get 57% dues from Imagicaa debt recast, Malpani picks 66.25% stake

Malpani Group acquired the stake by way of preferential allotment of equity shares worth Rs 415 crore.

Malpani Group (MPG), a Maharashtra-based group with presence in the amusement park business, has acquired a 66.25 per cent stake in Imagicaaworld Entertainment following a debt resolution by lenders outside of the bankruptcy process. Lenders recovered 57 per cent of their dues.

MPG acquired the stake by way of preferential allotment of equity shares worth Rs 415 crore. As part of the debt resolution plan, the lenders have been allotted equity shares worth Rs. 75 crore resulting in a collective shareholding of 11.97% in the company. The MPG’s funds were used for repayment of Rs 500 crore of debt to Aditya Birla ARC, Imagicaa said in a statement.

BOB Capital Markets acted as sole process advisor to a consortium of 10 lenders led by Union Bank of India and Cyril Amarchand Mangaldas acted as the legal advisor to lenders. The recovery from the debt recast resulted in lenders getting 57% of their dues.

“The acquisition was consummated through a debt resolution process outside of NCLT, in accordance with the RBI’s Prudential Framework for Resolution of Stressed Assets,” the statement said.

Three members of MPG, Rajesh Omkarnath Malpani, Manish Madhav Malpani and Jai Manish Malpani, have been inducted on the board of Imagicca.