Banks reach deal to sell SRS Ltd’s retail, realty business to recover loans
Focus keywords: bank lenders, real estate
Story: Lenders to SRS Ltd have reached an agreement with its promoters to sell the Faridabad-based company’s retail and real estate businesses to recover loans, two people directly aware of the development said on condition of anonymity reports Mint.
The decision to put more businesses on the block was taken after SRS Ltd, which is present in retail, real estate, healthcare and multiplexes, failed to agree on the valuation of its cinema exhibition business, it is reported.
Confirming the latest development, a spokesperson for the SRS Ltd said that it had decided to hive off its business verticals—in particular cinemas and retail—as its accounts with the lenders had been classified as non-performing assets.
SRS currently owes more than Rs10 billion to various lenders and had mandated SBI Capital Markets to sell its multiplex business.
“With the intent to liquidate the outstanding dues towards the lenders, the group, in the interest of the lender and stakeholders alike, has given its consent to the lenders to look for potential investors for assuming exposure/stake in the group companies by way of full and final settlement of lenders/existing stakeholders’ dues through a JV/outright sale, etc.,” said Vineet Gupta, head (corporate finance, new business development and financial strategy), SRS Ltd.