Game On! Nazara Technologies Scores Big with NCLT Nod for Smaaash Acquisition

The National Company Law Tribunal (NCLT) has approved Nazara Technologies Ltd.'s resolution plan for the acquisition of Smaaash Entertainment in a major boost to the ongoing insolvency resolution of the sports-themed entertainment outlet chain. Smaaash, owned by cricket icon Sachin Tendulkar, was admitted to insolvency in May 2022 after failing to pay around ₹452 crore of debt obligations mainly to Edelweiss Asset Reconstruction Company and other lenders such as Yes Bank, Sidbi, and Mabella Investment Advisors.

 

Gaming and media conglomerate Nazara Technologies got its resolution plan widely approved by Smaaash's creditors' committee in August 2024 with 99% of votes. The tribunal's nod pending slight modifications in the effective date terms is all that is awaited for the NCLT's approval of the plan. With the tribunal nod, Nazara has 30 days to seal the payment deal.

 

Founded by Shripal Morakhia in 2012, Smaaash operated a chain of sports-themed entertainment venues in large Indian cities, featuring amenities such as bowling, arcade, and cricket simulators. The company failed to keep up during the pandemic because it relied on physical walk-ins, causing financial hardship and eventual insolvency.

 

This acquisition supports Nazara's vision for expanding its gaming and entertainment business further solidifying its position in the Indian leisure and entertainment sector.

 

Source: The Economic Times