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Imagicaa Deal – Press Release – June 2022


A consortium of ten lenders led by Union Bank of India have successfully assigned their debt exposure in Imagicaaworld Entertainment Ltd. (“Imagicaa” or the Company) to Aditya Birla ARC. This assignment is undertaken under the RBI guidelines of Prudential Framework for Resolution of Stressed Assets dated June 7, 2019 leading to a "Change in Management" with lenders becoming equity shareholders as well.

Malpani Group (MPG), a Maharashtra-based diversified business group with a leading presence in the amusement park business, has acquired majority and controlling stake in Imagicaa.

BOB Capital Markets acted as sole process advisor to a consortium of 10 lenders led by Union Bank of India and Cyril Amarchand Mangaldas acted as the legal advisor to lenders.

Deal Complexities:

  • Implementing Change in Management and finding a suitable buyer in an industry where there are very few suitors. Malpani Group, the buyer is not only strategic investor, but a serious vintage industry player;
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  • One of its kind, outside NCLT, resolution under RBI guidelines, the first of its kind transaction in listed entity space;
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  • Balancing interests of all 10 lenders and expectations of multiple stakeholders;
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  • Deal Structuring, ensuring compliance with applicable regulations and navigating the documentation process involving three sets of lawyers & advisors.
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  • Conversion of part Debt to Equity allowing equity upside to lenders;
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  • Multiple assets with multiple complexities – Amusement Park, Hotel & Land

BOBCAPS Contribution:

  • Played a crucial role of hand holding all the 10 lenders through the complex process involving multiple stakeholders and garnering 100 percent support of lenders & timely approval for the transaction;
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  • During the course of multiple rounds of negotiations with the buyer, BOBCAPS was able to drive up the final bid, resulting in overall recovery of ~57% to Lenders;
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  • Negotiated a win-win deal for lenders by providing future intrinsic value in form of equity upside;
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  • Managed multiple Bid processes and generated investor interest in a niche industry, severely impacted due to COVID-19;
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  • Co-ordinated with three Legal Teams, Investors, Multiple Advisors keeping in mind the best interest of ten consortium lenders;

Please find attached a detailed Press Release for your reference. Let us know if you need any further information.

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