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This article is more than 2 year old.

Kotak FMPs: Essel Group reiterates commitment to repay all lenders

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Essel Group on Thursday said the company is committed to making repayments in full to all its lenders, including Kotak Asset Management Company, as per an agreed timeline in an attempt to ease concerns regarding the company's debt obligations.

Kotak FMPs: Essel Group reiterates commitment to repay all lenders
Essel Group on Thursday said the company is committed to making repayments in full to all its lenders, including Kotak Asset Management Company, as per an agreed timeline in an attempt to ease concerns regarding the company's debt obligations.
The statement came after Kotak AMC on April 10 delayed full repayment to investors of Kotak FMP Series 183, citing delays in recovering investments made in non-convertible debentures issued by two Essel Group companies Edisons Utility Works, Konti Infrapower, reported CNBC-TV18, citing sources. The Kotak FMP also has investments in NCDs issued by IL&FS Transportation Network.
"Essel Group wishes to highlight the point that based on its arrangement with the lenders, of which even Kotak Mahindra AMC is a part; repayment along with interest will be made to each and every lender, as per the agreed timeline of September 2019," according to a statement by a company spokesperson.
Sources told CNBC-TV18 that the principal amount has been repaid in full to investors on all maturing FMPs, along with appreciation so far, and all the realisable investments have been liquidated for payment to investors.
"Essel Group remains committed to achieve the resolution, with a sole objective of saving the loss of public money and the repayment of each and every lender," noted the statement.
Subhash Chandra-owned Essel Group has been struggling due to high debt and had defaulted on some of the repayments in January. The group in February said that it sealed an agreement with its lenders to keep it afloat. The group is reportedly in talks with Sony Entertainment to sell its stake in Zee Entertainment.
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