Fitness brand Talwalkars dragged to Bankruptcy Court by Axis Bank over unpaid dues

Old-time gymnasiums operator Talwalkars has been dragged to the Bankruptcy Court by Axis Bank NSE 0.45 % over unpaid dues, according to people aware of the matter.

The claim was filed by Axis Bank at the national company law tribunal’s (NCLT) Mumbai bench against Talwalkars Healthclubs NSE -3.92 %, court filings reveal.

An Axis Bank-led group has granted loans of Rs. 500 crore to the company. Axis Bank’s own exposure to the company is estimated at Rs. 120 crore. Its petition is pending hearing at NCLT.

Axis Bank & Talwalkars were yet to respond to news agency's queries.

Talwalkars Healthclubs is a publicly traded company that was created by spinning off the gymnasiums business two years ago. Talwalkars also operates a wellness business which is housed in Talwalkars Better Value Fitness.

The fitness company that was established in the 1930’s went on an expansion spree at the turn of the century. It opened fitness clubs across cities, entered into joint ventures involving high profile celebrities & even pursued international expansion through an acquisition in Sri Lanka.

One of its joint ventures with yoga entrepreneur Sarvesh Shashi boasted investors such as Jennifer Lopez, David Giampaolo, Mark Mastrov, Alex Rodriguez, Malaika Arora & former HDFC Bank NSE -0.34 % top honcho Paresh Sukthankar.

Talwalkars group companies revealed in a stock exchange filing in Oct 2019 that they were in default of certain payment obligations to lenders. 

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