The Yes Bank, sole lender to Carnival Cinemas, has classified the multiplex chain as a non-performing asset (NPA). The Shrikant Bhasi-led multiplex chain is seeking to restructure its debt which stands at over Rs. 800 crore, far more than the security provided to Yes Bank as most of the cinema halls of the group are on lease.
Following Carnival’s multiple failed attempts to raise equity, Yes Bank has given the company an ultimatum to find a buyer and infuse around Rs. 500 crore, failing which Yes Bank would convert the debt into equity and sell it.
Carnival Cinemas has been going through terrible times and has not even been able to service its debt of Rs. 800 crore. Yes Bank has now reportedly decided to take matters in its hands. It has agreed to recast the loan if the promoters infuse about Rs. 500 crore capital.
