The Bank of India (BoI) has extended a two-year $25 million bullet loan to Subhash Chandra-owned Delgrada Ltd. The loan was given by BoI’s Hong Kong branch last year at a 150 per cent margin. Delgrade had provided shares of Zee Telefilms (ZTL) as collateral.
In its presentation to the Joint Parliamentary Committee (JPC) on ZTL's foreign transactions, RBI said: "In July 1999, the special committee on Indian investment abroad had approved the proposal of Zee Telefilms Ltd. (I) to acquire 100 per cent stake in Zee Multimedia Worldwide Ltd., British Virgin Islands (ZMWL-BVI) in which Delgrada Ltd. (which is largely owned by Chandra) held 94 per cent stake.
The consideration for the acquisition of ZMWL-BVI was paid up by way of issue of shares of Zee Telefilms to the shareholders of ZMWL-BVI."
On FIPB's approval, Delgrada Ltd. was allotted 1,75, 51,950 equity shares of Zee Telefilms Ltd.
RBI granted permission to Delgrada Ltd. to pledge 1,75,00,000 equity shares of Zee Telefilms Ltd. as collateral security in favour of BoI, Hong Kong, for a loan of $25 million.
ZMWL-BVI has two 100 per cent subsidiaries -- Zee Multimedia Worldwide Ltd., Mauritius (Zee MWL-Mauritius) and Expand Fast Holding Ltd.
It has also a 50 per cent stake in Winterhealth Company Ltd. which owns 100 per cent of Asia Today Ltd. Zee MWL-Mauritius holds 100 per cent in Asia TV Ltd. UK, Asia TV (Africa) Ltd., Asia TV USA Ltd., Zee Television International Ltd. and Software Supplies International Ltd.
ZTL has two 100 per cent Indian subsidiaries -- Program Asia Trading Pvt. Ltd. (PATCO) and Siticable Network Ltd. PATCO holds 100 per cent stake in El-Zee Television Pvt.