Mutual funds likely to extend Essel Group's deadline for repaying remaining debt

Mutual funds are likely to extend the September 30 deadline for Essel Group to repay the remaining debt, according to three people familiar with the matter. After repaying about Rs 2,300 crore last week, Essel group have to settle the remaining debt by September 30 as per the agreement.

Essel Group sold 11 per cent in its media unit, Zee Entertainment, to Invesco Oppenheimer for Rs 4,224 crore and repaid Rs 2,300 crore to six mutual fund houses.

“As the Essel Group has genuinely made efforts to repay the debt and paid 50 per cent already, consortium of lenders could extend the time by another three months” said a source.


The group had told funds holding the pledged shares that it could offload a further 10 per cent in Zee to repay the balance of what it owes by September 30. Essel Group didn’t respond to ET’s mailed queries.

Various debt mutual fund schemes of Aditya Birla Sun Life Mutual Fund, ICICI Prudential Mutual Fund, SBI Mutual Fund, Kotak Mutual Fund, Franklin Templeton Mutual Fund and HDFC Mutual Fund, had an exposure of more than Rs 7,500 crore to Essel group securities. They hold shares of group entities, such as Zee, Dish TV and Essel Infrastructure, as collateral.

Last week, Essel Group paid Rs 780 crore to Aditya Birla Sun Life Mutual Fund, Rs 500 crore to HDFC Mutual Fund, Rs 200 crore to Frankline Templeton Mutual Fund, Rs 400 crore to ICICI Prudential Mutual Fund, Rs 200 Crore to SBI Mutual Fund and Rs 220 crore to Kotak Mutual Fund.