"We're actively working to meet this obligation"
Thousands of UK savers are preparing for a potential financial setback as Eros Media World indicates possible delays in repaying £3.75 million owed to bondholders.
This payment stems from a bond issued by Eros on the London Stock Exchange in 2014.
The cash is a fraction of the £50 million that investors were owed.
However, Eros, which is run by the Lulla family, has deferred payment for years.
In the summer of 2024, a restructuring agreement was reached where UK investors consented to exchange their bonds for an immediate payment of £7.50 per £100 owed, totalling £3.75 million and a pledge of up to £57.50 per £100 within two years.
The deadline for the first sum is March 10, 2025, but Eros has now told bondholders it would pay on time “or as soon as it has funds available to do so”.
The warning has outraged investors, especially as the Lullas recently said that they had repaid £43 million of debt in India.
In a statement, Eros said: “We’re actively working to meet this obligation on Monday as planned.
“Should there be any delay, which we are striving to prevent, we would engage directly with bondholders and the trustee.”
The Lulla family’s financial prominence has been well-documented.
Kishore Lulla, a key figure in the family, was listed among the wealthiest Indians, with a net worth of £240 million and a family fortune of £206 million, according to The Sunday Times Rich List.
Eros Media World’s financial journey has been tumultuous in recent years.
The company merged with STX Entertainment in 2020 to form ErosSTX Global but faced challenges leading to the sale of STX in 2022.
Subsequently, Eros rebranded itself as Eros Media World and shifted its focus to its content library and digital platforms.
However, financial reporting issues emerged, culminating in the delisting of Eros shares from the New York Stock Exchange in January 2023.
The current predicament has left UK bondholders in a state of uncertainty.
The anticipated upfront payment, though a fraction of the original £50 million owed, represents a significant sum for individual investors.
The potential delay has raised concerns about Eros’s financial stability and its commitment to honouring international obligations.
Industry analysts suggest that the company’s recent debt repayments in India might have strained its liquidity, affecting its ability to meet obligations elsewhere.
The lack of timely financial disclosures further complicates assessments of Eros’ fiscal health.
Bondholders are now awaiting further communication from Eros and the appointed trustee, Truva Trust Corporation Plc, regarding the exact timing of the payments.
The situation underscores the risks associated with cross-border investments and the importance of transparency in corporate financial dealings.
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