The National Company Law Tribunal (NCLT) has approved gaming and media firm Nazara Technologies’ resolution plan to acquire Sachin Tendulkar-backed Smaaash Entertainment, which has been undergoing insolvency proceedings under the Insolvency and Bankruptcy Code (IBC).
“We wish to inform you that the resolution plan submitted by the company for acquisition of Smaaash Entertainment Private Limited, a company undergoing corporate insolvency resolution process under the insolvency and bankruptcy code, 2016, has been approved by the National Company Law Tribunal, Mumbai… subject to a modification of the provisos to the term effective date,” Nazara informed stock exchanges on Wednesday.
In August 2024, Nazara said it received a letter of intent (LoI) for the acquisition of the firm as the committee of creditors (CoC) of Smaaash Entertainment approved the resolution plan submitted by Nazara.
Smaaash, founded in 2012 by entrepreneur Shripal Morakhia, operated a chain of sports-themed entertainment centres offering activities such as bowling, arcade games, cricket simulators, and go-karting.
The company expanded across major Indian cities but struggled to scale profitably as its operations were heavily reliant on physical footfalls, which took a hit during the pandemic. Smaaash eventually defaulted on its financial obligations, leading to the initiation of corporate insolvency proceedings.
It was admitted to insolvency proceedings in May 2022 and owes around Rs 452 crore to a group of lenders led by Edelweiss Asset Reconstruction Company. Other creditors include Yes Bank, Sidbi and Mabella Investment Advisors.
As reported by ET on April 17, Nazara and a consortium comprising Resurgent India and Sanjay Lodha had submitted formal bids for the bankrupt company, each placing an earnest deposit of Rs 5 crore.
Lodha is the managing director of Faridabad-based technology company Netweb Technologies.
Nazara, which is listed on the Indian bourses, has been actively pursuing acquisitions to expand its gaming and media portfolio. It has earmarked Rs 800–1,000 crore this year to fund inorganic growth, ET reported in April.
Recent investments include UK-based Fusebox Games, edtech app Kiddopia, and US-based WildWorks, among others.
Source: Economic Times