Cyril Amarchand Mangaldas advised 10 Lenders led by Union Bank of India on its resolution plan for Imagicaaworld
Cyril Amarchand Mangaldas advised 10 Lenders led by Union Bank of India on its resolution plan for Imagicaaworld
Cyril Amarchand Mangaldas advised consortium of 10 lenders led by Union Bank of India (UBI) in relation to the resolution plan for Imagicaaworld Entertainment Limited (Imagicaaworld).
The quantum of debt availed by Imagicaaworld from the Lenders was approximately INR 1,417 Crores.
The resolution plan was implemented pursuant to the Reserve Bank of India's Prudential Framework for Resolution of Stressed Assets dated June 7, 2019.
Malpani Parks Private Limited (MPPL) has agreed to acquire a controlling stake in Imagicaworld and restructure the debt of Imagicaaworld pursuant to the resolution plan submitted by MPPL to the consortium of 10 lenders of the Imagicaaworld led by the UBI.
The Insolvency team of Cyril Amarchand Mangaldas led by Amey Pathak, Partner; and Madhav Kanoria, Partner; with support from Sohrab Kharadi, Senior Associate; and Shriji Pandey, Associate. advised the consortium of lenders led by Union Bank of India on the Transaction.
The General Corporate Team of Cyril Amarchand Mangaldas led by Gautam Gandotra, Partner with support from Arnav Shah, Principal Associate advised on SEBI related aspects of the Transaction.
The resolution plan inter alia involves:
(i) MPPL acquiring controlling stake in Imagicaaworld through preferential issue of equity shares under Regulation 164A of SEBI (Issue of Capital and Disclosures Requirements) Regulations, 2018 (ICDR Regulations) and consequent change in control and management of Imagicaaworld;
(ii) Assignment of outstanding debt Imagicaaworld to Aditya Birla Asset Reconstruction Company Limited (Aditya Birla ARC), an asset reconstruction company; and
(iii) Preferential issue of equity shares of the Imagicaaworld to the lenders as part conversion of their loans.
For the purpose of this transaction, investment agreement was executed between MPPL and Imagicaaworld; letter of intent issued by the Lenders to MPPL and accepted by MPPL; inter-creditor agreement was executed between the Lenders, and assignment agreement was executed between Aditya Birla ARC and lenders.
