Bollywood movie group Eros fails to repay UK traders

Bollywood film group Eros has reneged on a deal with UK investors. It failed to pay money owed when it fell due on Monday, as we warned in The Mail on Sunday last week.

The cash – up to £3.75 million – was part of a complex plan to repay investors who bought a £50 million bond issued by Eros in 2014. The money has yet to appear, enraging bondholders and fuelling an angry letter from the bond trustee, Truva.

Truva intends to call a meeting with Eros to determine next steps, adding Eros had issued significant announcements without informing the trustee, as it should have done.

Thousands of UK savers bought bonds in 2014, drawing comfort from the London Stock Exchange listing and Eros’s reputation as a Bollywood titan. But Eros has failed to make interest payments when they fell due and tried to restructure the bond issue so repayments could be reduced and delayed.

Facing the music: A scene from Ram-Leela, one of Eros’s releases

Under the latest deal, agreed last summer, investors would receive an initial payment on Monday, with more cash coming from the sale of shares in video streaming group, Xfinite, controlled by Eros founder Kishore Lulla and his wife, Manjula.

Eros said: ‘We recognise the patience and trust bondholders and creditors have shown, and share their frustration at any delay.’