ZEE stake sale done, but Essel needs more

Debt-ridden Essel Group might have gained some relief from its agreement to sell 11 per cent of flagship Zee Entertainment Enterprises (ZEEL) for Rs 4,224 crore, but it still has a way to go before it is able to raise enough cash to meet its around Rs 11,000 crore debt repayment before time runs out on September 30.

While the Essel Group had an overall debt of around Rs 16,000 crore, around Rs 11,000 crore of debt raised from mutual funds and non-bank institutions by pledging promoter shares across group firms, including ZEEL, needs to be settled by September 30, according to the standstill agreement reached with creditors in February.