 "BDO Restructuring Advisory re-invites bids for gaming company SMAAASH")
Resolution Professional - BDO Restructuring Advisory LLP - has re-invited resolution plans for SMAAASH Entertainment, a company in the business of gaming and entertainment centres.
Earlier attempts at resolution in July and December 2022 did not reach finality as lenders did not find the resolution plans satisfactory.
Amongst five financial creditors, Edelweiss Asset Reconstruction Company Ltd has the highest verified claims of Rs 368.77 crore as of the end of November 21, 2022, Mabella Investment Advisors LLP Rs 33.40 crore, and SIDBI – Rs 23.0 crore. The total verified claims stood at Rs 426.94 crore, according to claims data on the website.
Smaaash was launched in 2012. It now has 12 centres across 10 cities covering 0.15 million sq ft. It marries sports, virtual reality, music, and dining into an immersive, evolved, interactive, and innovative social experience for family, friends, and children alike. SMAAASH is in the field of sports simulation technology and proprietary gamification technologies such as a bowling zone, motor racing and bike racing simulators and the go-karting tracks, according to the Expression of Interest (EOI) document.
The Corporate Debtor (SMAAASH) has been involved in ongoing litigations, especially in connection with the trademarks and other brand content. On account of the ongoing brand litigations, the National Company Law Tribunal (NCLT) through its order dated June 13, 2023, allowed the exclusion of a period of 262 days from the Corporate Insolvency Resolution Process (CIRP) period. Accordingly, the CIRP period is to end on January 19, 2024.
On November 22, 2023, the Resolution Professional received a favourable order in the brand litigations upholding the ownership rights of the Corporate Debtor in relation to the trademarks and other brand content.
Following this favourable development and the extension of the time period for completing the CIRP until January 19, 2024, the Committee of Creditors (CoC) asked the Resolution Professional to restart the process for inviting resolution plans.