Nazara Technologies Gets NCLT Nod For Acquisition Of Smaaash Entertainment
The Mumbai bench of the NCLT also settled a dispute regarding the ownership of the Smaash brand.
Nazara Technologies Ltd. reported receiving approval from the National Company Law Tribunal for its resolution plan to acquire Smaaash Entertainment Pvt. on Wednesday.
Smaaash Entertainment is undergoing a corporate insolvency resolution process.
The process first began in 2022, due to a default of payment of Rs 292.4 crore to Edelweiss Asset Reconstruction Co. To manage Smaaash Entertainment's day-to-day affairs during the insolvency process, Bhrugesh Amin, representing BDO Restructuring Advisory LLP, was appointed as the resolution professional.
Amin also acknowledged claims totaling Rs 426.3 crore from Edelweiss ARC, Mabella Investment Advisors, Sidbi, and Yes Bank.
The Mumbai bench of the NCLT also settled a dispute regarding the ownership of the Smaash brand, where it declared the transfer of the brand name and other important assets to Fun Gateway Arena Pvt. by founder Shripal Morakhi to be fraudulent and subsequently null and void.
Based on its findings, the NCLT concluded that a deliberate effort was made by founder Shripal Morakhia, in conjunction with his associate firms, to divert essential and valuable assets, notably the 'Smaaash' brand, away from Smaaash Entertainment. The tribunal reasoned that this collusion aimed to diminish the company's value during the insolvency proceedings.
Smaaash Entertainment is a company that runs entertainment centres for various kinds of games and recreational activities such as bowling, go-karting, arcade games, sports simulation and virtual reality games.
Shares of Nazara Technologies closed 5.45% higher at Rs 1,071.2 per share, compared to a 0.14% uptick in the benchmark Nifty. The share price had risen 68.41 % in the last 12 months and 5.69% for year-to-date.
