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.
Other Parties and Advisors to the transaction included BOBCAPS (Acted as Advisors to Lenders).
The Transaction was Closed on June 23, 2022.
About Cyril Amarchand Mangaldas
Cyril Amarchand Mangaldas (cam) is India’s leading law firm with a global reputation of being trusted advisers to its clients. The Firm advises a large and diverse set of clients, including domestic and foreign commercial enterprises, financial institutions, private equity and venture capital funds, start-ups, government and regulatory bodies. The Firm generalists, specialists and senior ex-regulators expertly guide clients across a spectrum of transactions, sectors and regulations. With 1000 lawyers and 160 Partners, the Firm is the largest full-service law firm in India and offices in key business centres at Mumbai, Delhi-NCR, Bengaluru, Ahmedabad, Hyderabad, Chennai, GIFT City and also in Singapore.
The Firm recently received “Innovation in Advancing Markets” award at the FT Innovative Lawyers Asia Pacific 2022 Awards and the “National Law Firm of the Year: India” award at the IFLR Asia Pacific 2022 awards ceremony. The Firm had won “India Deal Firm of the Year” at the ALB India Awards and “Firm of the Year” at the IFLR1000 India Awards in 2021.
