According to reports, Nazara Technologies Ltd receives approval from the National Company Law Tribunal for its resolution plan to acquire Smaaash Entertainment Pvt. Smaaash Entertainment is undergoing a corporate insolvency resolution process.

The process initially commenced in 2022, triggered by a payment default of Rs 292.4 crore to Edelweiss Asset Reconstruction Co. To oversee Smaaash Entertainment's daily operations during the insolvency proceedings, Bhrugesh Amin, representing BDO Restructuring Advisory LLP, was designated as the resolution professional.

The company is reaching Rs 426.3 crore from Edelweiss ARC, Mabella Investment Advisors, Sidbi, and Yes Bank. The Mumbai bench of the NCLT resolved a conflict concerning the ownership of the Smaash brand, ruling that the transfer of the brand name and other key assets from founder Shripal Morakhi to Fun Gateway Arena Pvt. was fraudulent and thus invalid.

According to reports, the NCLT determined that founder Shripal Morakhia, along with his partner firms, intentionally attempted to redirect important and valuable assets, particularly the 'Smaaash' brand, from Smaaash Entertainment. The tribunal concluded that this collusion was intended to reduce the company's worth during the insolvency process.

 

Smaaash Entertainment operates entertainment centers that offer a variety of games and recreational activities, including bowling, go-karting, arcade games, sports simulations, and virtual reality experiences.

 

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Nazara Technologies' shares ended 5.45 percent up at Rs 1,071.2 each, in contrast to a 0.14 percent rise in the Nifty index. The stock price increased by 68.41% over the past year and by 5.69% since the beginning of this year.