According to Economic Times daily, one of the old-time and well-known gymnasium operators Talwalkars is currently facing bankruptcy proceedings, as Axis Bank has filed a claim with the National Company Law Tribunal’s (NCLT) Mumbai Bench for committing default in payment of dues.
The court filings have shown that the claim has been filed with NCLT’s Mumbai Bench by Axis Bank against Talwalkars Healthclubs.
One of the Axis Bank-led group had provided loans to the tune of Rs. 500 crores for Talwalkars. Moreover, Axis Bank has provided an exposure of about Rs. 120 crores to the company. The petition that has been filed is still pending for hearing at the NCLT.
Axis Bank and Talwalkars have not yet responded to the queries raised by ET.
Talwalkars Healthclubs is a publicly-traded company listed on the major stock exchanges BSE and NSE. The company came into existence as a result of spinning off gymnasiums business about two years back. Moreover, Talwalkars has a wellness business that is housed under Talwalkars Better Value Fitness.
Started during the early 1930s, the Company had undertaken the process of expansion that has spanned over the past several decades. It has also established several fitness clubs across various cities in the country, in addition to entering into joint ventures that involved several high-profile celebrities. Moreover, it has also expanded globally by completing an acquisition that has been based out of Sri Lanka.
Talwalkars has also entered into various joint ventures, with one of them being with Sarvesh Shashi, a yoga entrepreneur and has also boasted of investors such as Jennifer Lopez, Mark Mastrov, Alex Rodriguez and a few others.
The stock exchange filings that was made by the Company during the month of October last year showed that they had committed a default in some of their payment obligations to be made to the lenders.