With inordinately high debt levels and promoter holding compromised, their focus now is on not just how the market reacts but equally on Chandra's next move to cauterise the Friday's wounds.
Apart from huge MF and NBFC exposure amounting to Rs 12,000 crore, a large number of private sector and PSU banks have also provided funding of hundreds of crores to the promoter holding companies, as well as to their private companies operating roads, solar projects, etc.
The group's total debt is estimated at over Rs 20,000 crore, and to make matters worse, none of it is in Zee Entertainment which at least has cash flows and could service debt.
There is now a big question mark around how this huge debt burden will be serviced and repaid as any stake sale transaction, for which there is anyway no visibility at the moment, will take months to complete in view of multiple approvals required.
What is of concern is that the Zee Group implosion comes on the back of an existing imperilled IL&FS which continues to rock the financial system. With no resolution in sight to the IL&FS crisis, the Zee problems come like a double whammy for the market and the debilitated banks.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz
This website uses cookies.