Nazara Technologies Gets NCLT Nod To Acquire Smaaash Entertainment

Nazara Technologies Ltd. has received approval from the National Company Law Tribunal (NCLT) to go ahead with its plan to acquire Smaaash Entertainment Pvt. Ltd.

Smaaash has been going through an insolvency process since 2022 after it failed to repay Rs 292.4 crore to Edelweiss Asset Reconstruction Company. During this process, Bhrugesh Amin from BDO Restructuring Advisory LLP was appointed to manage the company's operations.

Amin also confirmed claims of Rs 426.3 crore from creditors including Edelweiss ARC, Mabella Investment Advisors, SIDBI, and Yes Bank.

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The NCLT’s Mumbai bench also resolved a dispute over the ownership of the Smaaash brand, ruling that its transfer to Fun Gateway Arena Pvt. by founder Shripal Morakhia was fraudulent and therefore cancelled.

In an exchange filing, Nazara said, “We wish to inform you that the resolution plan submitted by the company for acquisition of Smaaash Entertainment Private Limited has been approved by the National Company Law Tribunal, Mumbai, by an order pronounced on May 07, subject to a modification of the provisos to the term effective date.”

Nazara, the online gaming company, got a letter of intent (LoI) to acquire Smaaash in August last year. Around that time, its board also gave initial approval to arrange a bank guarantee of up to Rs 20 crore for the deal.

This move came after the NCLT began insolvency proceedings against Smaaash in May 2022 because the company couldn’t repay its debts to lenders like Edelweiss ARC, Yes Bank, SIDBI, and Mabella Investment Advisors.

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