The SRS Cinemas chain is in liquidation. The liquidator for the multiplex chain, which has its head office at Faridabad, on 5th August issued an e-auction sale notice in the newspapers. The notice relates to sale of assets in liquidation under Insolvency And Bankruptcy Code 2016. The SRS group went into insolvency in September 2018 when Ashok Gulla was appointed the Insolvency Resolution Professional (IRP). The company went into liquidation vide order dated 15th October, 2019, passed by the Chandigarh bench of the National Company Law Tribunal.
The assets put up for auction are:
(1) Assets installed at 13 locations (leasehold premises) in five states for operating cinemas under the brand name of SRS Cinemas from 35 cinema screens, with a reserve price of Rs. 20 crore;
(2) 100% equity shares of SRS Entertainment India Limited, engaged in cinema business and operating from 12 screens at four locations (leasehold premises), with a reserve price of Rs. 10.25 crore;
(3) SRS brand, with a reserve price of Rs. 50 lakh;
(4) An Accord car purchased in 2005, with a reserve price of Rs. 75,500.
The cinema chain, started in 2004, belongs to two brothers, Dr. Anil Jindal and Sunil Jindal, alongwith some others. While Dr. Anil Jindal is behind bars for frauds committed, brother Sunil is underground. Pratik Jindal, son of Dr. Anil Jindal, is also not traceable. The multiplex chain has been in deep trouble ever since the two brothers and the other directors borrowed money from the market at heavy interest rates for their other businesses including jewellery. They ultimately defaulted in payment of interest as well as repayment of principal amounts. Even payment of distributors’ shares had become an issue till the State Bank of India was appointed the official liquidator. After the appointment of the bank as the liquidator, distributors breathed easy as their dues started to be cleared. Tinku Singh, group president and chief strategy officer of SRS Cinemas, who has been handling the affairs of the cinema business since years, has ensured that dues of distributors are cleared without hassle.
Incidentally, at least three to four multiplex chains have evinced interest in acquiring the cinemas of the SRS chain. Negotiations are on. Meanwhile, Tinku Singh told Information, “From our side, we are also keeping things ready for reopening our properties when the lockdown is lifted.” It is learnt that the cinema staff salaries and vendors’ payments were also being cleared on time till operations were disrupted due to the coronavirus pandemic.