Nazara Technologies Limited, a leading player in the gaming and sports media industry, has secured creditor approval to acquire Smaaash Entertainment Private Limited, a sports entertainment startup currently undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. This significant development follows Nazara’s designation as the “Successful Resolution Applicant” for Smaaash.
The Committee of Creditors (CoC) of Smaaash has given its nod to Nazara’s Resolution Plan, with a Letter of Intent (LOI) issued by the Resolution Professional on August 7, 2024, confirming the approval. However, the acquisition is contingent upon requisite approvals from the National Company Law Tribunal (NCLT) and other relevant regulatory authorities.
Nazara Technologies disclosed in a regulatory filing, “The Resolution Plan submitted by the Company in connection with the acquisition of Smaaash is subject to the terms of the LOI and requisite approvals from the Hon’ble National Company Law Tribunal and/or any other regulatory authority/courts/tribunal (as the case may be) under applicable laws.” This statement underscores that the acquisition process is not yet finalized, pending these legal clearances.
To facilitate the acquisition, Nazara’s Board has granted preliminary approval for securing a performance bank guarantee of up to ₹20 crore from Standard Chartered Bank. This guarantee is intended for the Resolution Professional managing Smaaash Entertainment’s insolvency proceedings.
Smaaash Entertainment entered insolvency in May 2022 after failing to repay a ₹292.4 crore debt to Edelweiss Asset Reconstruction Co. The Mumbai bench of the NCLT initiated the insolvency process, appointing Bhrugesh Amin as the Resolution Professional to oversee the company’s operations.
The acquisition of Smaaash aligns with Nazara Technologies’ broader strategic goals. In a related development, Nazara recently acquired UK-based gaming studio FuseBox A for $27.2 million in an all-cash transaction, further expanding its footprint in the global gaming market.
The successful acquisition of Smaaash Entertainment would mark another milestone in Nazara’s growth trajectory, positioning it strongly in the sports entertainment sector.
