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    Punit Goenka: No risk of VTB Capital selling Zee shares, may extend loan term

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    Punit Goenka: No risk of VTB Capital selling Zee shares, may extend loan term

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    There is no risk that VTB Capital will sell Zee shares encumbered to them for promoter loan, Punit Goenka told CNBC-TV18 in an interview.

    There is no risk that VTB Capital will sell Zee shares encumbered to them for promoter loan, Punit Goenka told CNBC-TV18 in an interview.
    “VTB will require promoters to sell any shares in Zee since it's indirectly pledged so there is no risk of that happening” said Goenka.
    VTB Capital has extended debt of Rs 2,000 crore to Essel Group and indirectly holds pledge of 10.7 percent stake in Zee Entertainment. Zee also clarified that VTB’s loan maturity is one year away and no covenants have been breached to trigger a sale.
    Zee revealed that as part of the negotiations with the Russian lender, Rs 2,000 crore loan will be restructured and repayment extended if part of 2.3 percent stake sale proceeds are paid to them.
    “We need to repay only Rs 5,000 crore and we are on track to do it within 90 days” said Goenka, adding that some strategic investors have re-initiated deal talks. “We have a tight deadline so a strategic needs to give a binding bid in three months.”
    “Promoters intend to retain half the current promoter shareholding post deal” he said.
    It will be a mix of stake sale in Zee and infrastructure asset sale to repay Rs 5,000 crore to lenders of promoter loan against shares. Infrastructure assets like solar asset sale to Adani and road assets sale are expected this quarter and will be used to release promoter pledge.
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