Essel Group said it has preserved official conformity with its lenders to keep it floating, under which it gets time till September to deleverage or pare its debt.
The agreement is with those lenders who have taken pledge shares of the collection flagship and scheduled entity, Zee Entertainment Enterprises, and Dish TV India.
On January 27, the group had long-established that a sympathetic with the lenders had been achieved, which was finalized on Sunday.
The agreement was not to say publicly the company a nonpayer as it had admitted that it could service the debt only up to December.
"As per the permission, the lenders have decided that there will not be any event of non-payment declared till September 30, 2019, due to the association in the stock price of Essel Group's mention scheduled corporate entity," the company said in a late evening statement.
"This permission provides the required amount of time for the organization to complete the strategic sale process of its key assets without any cooperation on the value," the statement added.
The management led by believer Subhash Chandra at peace the lenders that within the time frame a complete declaration will be achieved, leveraging the stake sale process, the company said.
The lenders have show full co-operation and have decided to support the management as a team, the statement claimed.
The group of lenders, including banks, mutual funds, and non-banking financier agreed to support the management, it said.
"I am glad that formal permission with the lenders has been achieved today which seals and justify their belief and trust in us and the inherent value of our assets.
"As one team, we are now absolutely paying attention on the implementation of the planned sale process, with the respected support of our lenders. We thank them for their trust, endurance and above all for their complete co-operation comprehensive, enable us to take the next steps towards resolution," Chandra was quoted as saying in the statement.
The company, which has high debt, default on some of the payments, which led to the share pledge.
Chandra had on January 25 issued an admission of guilt to lenders through a public statement, stating that the company planned to pay back all of its debt, which came on a day when the group shares were puttered on the market plummeting between 17 and 30 percent.
He had admitted that his company was in a financial mess, and blamed it on aggressive bets on infra, which has gone out of control since the IL&FS crisis, and acquisition of Videocon's D2H business.
Apologizing to lenders, he also supposed that some negative forces were out to damage his efforts to raise money through a strategic sale in the flagship company Zee Entertainment Enterprises.
