In a move signaling the end of the proposed loan to the Sahara Group, Mirach Capital Group has remitted $2.625 million to the SEBI-Sahara Fund. Under a December 10th agreement with Sahara, Mirach Capital Group was entitled to fees related to legal, accounting and transaction related costs to be paid by Sahara.
"Attempting to wipe the slate clean amongst unfounded allegations by Sahara in the media, Mirach asked repeatedly for the wiring instructions for the SEBI-Sahara Fund account, which went unanswered. Mirach remitted the funds today via mail," the US-based company said in a statement.
" Though incurring expenses to date of $1,075,000 in related closing costs, Mirach has remitted the full amount back to Sahara, in an effort to show the Honorable Supreme Court of India the group stands willing to incur costs while waiting for a fair ruling on February 20th," it added.
In a letter to SEBI, the Amicus Curiae, and Sahara representatives alerting them of the remittance, CEO Saransh Sharma also stated that a notable bank would be contacting all applicable parties within the week confirming that blocked and earmarked funds are available for the purposes of completing the previously contemplated loan transaction, which will now be applicable towards a sale of Sahara’s assets.
“Mirach stands ready, willing and able to close this transaction in an expedited manner should the Apex court and SEBI wish to see a swift resolution in favor of the creditors who have waited several years for some form of solace,” Sharma also noted in the letter.
Mirach has offered $2.05 billion on all of the assets previously involved in the loan package. "After unsuccessfully closing 28 offers, we ask the Honorable Supreme Court of India to allow Mirach to purchase these assets and bring this saga to a close," it said.
On Friday, Mirach Capital had said that Sahara Group’s allegations of forgery were unfounded and it was still willing to buy out the Indian company’s assets in New York and London.
“The dangerous allegations made by Sahara are indicative of a direct intent to destabilise a deal structure that, given its high rate of return, would benefit Mirach and its investors,” it said in a statement.
Under the deal estimated to be around $2 billion, Mirach Capital, headed by Indian origin Saransh Sharma, had offered to extend a loan to the Sahara Group against hotels in New York and London.
Sahara wanted to use a part of these funds to release its Chairman, Subrata Roy, who has been jailed in a case relating to non-repayment of investor money.
On Thursday, Sahara said in a statement that it had found out that the Bank of America letter, submitted by Mirach to the Supreme Court as a proof that it had set aside sufficient funds for the transaction, was forged. In response, Mirach Capital said it had reached a deal with Sahara to provide a structured loan package, including taking over the debt on the foreign assets from Bank of China, and sale of the Indian assets.