Debt-ridden Adlabs Entertainment Ltd, promoted by Bollywood producer, director Manmohan Shetty, is apparently under the hammer of creditors. Lenders led by the Union Bank of India, have invited expression of interest (EOI) to recover more than Rs1,200 crore by selling the company properties. There is an advertisement published by BDO India LLP for the auction without disclosing the name of the company. However, the description matches with that of Adlabs.
BDO India has been appointed as process advisor to carry out the sale of loan exposure "in an entertainment company operating a theme park and hotel located in western India under open auction method. The outstanding loan exposure as on 1 August 2019 is Rs1,212.23 crore."
In the advertisement, BDO has invited offers on 100% cash basis from interested parties by 21 August 2019. The e-auction is scheduled to be conducted on 12 September 2019, the advertisement says.
Adlabs Entertainment operates Imagica, a theme park, water park, and snow park spread across 300 acres on the Mumbai-Pune expressway. This also includes Novotel Imagica Khopoli, a 5-star hotel.
Corporation Bank too had filed for bankruptcy against the company in June 2019 to recover its loan worth Rs80 crore. Last year in September, Tourism Finance Corporation had moved the Mumbai bench of National Company Law Tribunal (NCLT) to recover its Rs46 crore dues from Adlabs Entertainment. However, the tribunal has not approved either of these pleas as 11 other banks are not keen on a bankruptcy process.
Apart from Union Bank, Adlabs’ bankers include Bank of Baroda, Indian Overseas Bank, Bank of India, Central Bank, Syndicate Bank, Punjab & Sind Bank and Jammu & Kashmir Bank, among others.
For the quarter ended June 2019, Adlabs Entertainment reported a net loss of Rs32.37 crore on revenues of Rs81 crore compared with a net loss of Rs20.86 crore and revenues of Rs84.73, in the same period last year.
On Tuesday, Adlabs Entertainment closed 4% down at Rs3.82 on the BSE, while the 30-share Sensex ended 1.7% down at 36,958.