Zee Entertainment gains 5% after lenders agree to extend timeline for Essel Group


NEW DELHI: Shares of Zee Entertainment EnterprisesNSE -2.20 % (ZEEL) rallied 5 per cent in early trade on Wednesday after ETNow reported that lenders have unanimously agreed to extend the timeline for Essel Group to repay debt.

“Lenders have extended support to the Group and its promoters,” the report said.

The scrip advanced as much as 5 per cent to Rs 293.30 on BSE, while the benchmark BSE Sensex was trading over 200 points, or 0.50 per cent, down at 38,859.

In an earlier development, Subhash Chandra-led Essel Group on September 10 said it has part-completed its promoter stake sale in flagship Zee Entertainment Enterprises, and is working on more divestments to pay off the Rs 13,000 crore owed to lenders.

The group said it has sold 8.7 per cent of its holding in ZEEL, and will be executing the sale for remaining 2.3 per cent stake in the next few days. It had in July announced plans to raise Rs 4,224 crore from the sale of 11 per cent ownership of ZEEL to the US-based Invesco Oppenheimer Developing Markets Fund, according to PTI.

The Essel Group is in self-admitted financial difficulties since the NBFC crisis, as a slew of its non-media bets, including infrastructure, roads and power went awry and it was unable to refinance debt on the same.