Home Production house This fintech firm bailed out the post-production house of ’83’, ‘Ae Dil Hai Mushkil’

This fintech firm bailed out the post-production house of ’83’, ‘Ae Dil Hai Mushkil’

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LegalPay, a start-up that provides legal and debt financing solutions to businesses, has provided bridge financing in an undisclosed amount to a post-production house, Poets Lovers and Lunatics Motion Pictures Private Limited (Poet Lovers) which is currently subject to corporate insolvency proceedings. Resolution process (CIRP).

Poet Lovers has provided post-production sound mixing services for some well-known Bollywood movies like ’83’, ‘Ae Dil Hai Mushkil’, ‘Naam Shabana’, ‘Raabta’ and ‘Newton’ among many others .

Incidentally, to revive and maintain these production houses which are usually valued at around Rs 20 crore, the need for interim funding ranges between Rs 50 lakh to Rs 3 crore. These funds are used for their daily operating needs during the CIRP.

Interim funding is an ultra-secure loan for a short period of 6-12 months and resolution professionals use these funds to pay for operational costs and/or immediate needs of companies subject to CIRP, such as payments to professionals , workers, security personnel, etc.

The main purpose of bridge financing is to keep businesses, undergoing CIRP, as a going concern. It is super secure and this security is guaranteed by law under the Insolvency and Bankruptcy Code, 2016 (IBC, 2016).

LegalPay, on the other hand, targets companies undergoing insolvency, in which the interim funding requirement ranges from a mere Rs 5 lakh to up to Rs 10 crore.

According to Kundan Shahi, CEO of LegalPay, many companies are in need of bridge financing – a need further heightened by the pandemic – and the start-up looks forward to working with many other companies that need such financing. to keep them afloat during the period of insolvency.

Recently, the company had provided bridge financing to Bengaluru-based Yashomati Hospitals.

“LegalPay has taken an unprecedented step in serving a niche interim finance market. They have really been instrumental in the pace of the insolvency resolution process. I think they present a tremendous opportunity industry-wide for resolution professionals and struggling businesses,” said Rekha Shah, Resolution Professional, Poet Lovers.