Nazara Technologies, a gaming firm based in Mumbai, is reportedly aiming to acquire Smaaash Entertainment Pvt. Ltd through the insolvency and bankruptcy process, as per sources familiar with the situation.
As part of the corporate insolvency resolution process, Nazara is expected to submit its resolution plan by March 9 to revive the insolvent firm. Last year, various entities including Adlabs Entertainment (Malpani Group), Manikchand Group, FZE, Tech Connect Services, Capri Global, Jindal Enterprises, and iLabs India Special Situation Fund had also shown interest in acquiring Smaaash Entertainment.
The bid amount remains confidential under the code, according to one of the sources.
Smaaash Entertainment was admitted to the Mumbai bench of the National Company Law Tribunal (NCLT) in May 2022 after defaulting on payments amounting to ₹292.4 crore to Edelweiss Asset Reconstruction Co. Following this, Bhrugesh Amin was appointed as the resolution professional to oversee the operations of the company.
Despite incurring losses during the 18-month COVID-19 shutdown, Smaaash Entertainment managed to recover once restrictions were lifted.
“The timelines are generally provided in the expression of interest which may be modified by the RP at the request of the Committee of Creditors (CoC). However, the same shall be subject to a maximum limit of 330 days. Typically, from 9 March, the remaining process till it reaches the authority for approval, may take up to 30 days. Then, before the NCLT it will depend on various factors like number of objections to the plan,” said Ashish Pyasi, partner, Aendri Legal.
Following due compliance, the resolution plan will be presented to the CoC for final voting, Pyasi added.
Smaaash Entertainment, founded by Shripal Morakhia in 2012, specializes in sports simulation and proprietary gamification technologies. It operates 30 centers across India, offering activities such as twilight bowling zones, motor racing, bike racing, and go-karting. Morakhia has previously stated efforts to revive the company.
Queries sent to Amin and a Nazara spokesperson did not receive any response.
