Bollywood’s favourite VFX studio set to lose six offices in Mumbai
Pixion in deep trouble. Three group companies owe Rs 1959 cr. Banks to auction assests in Feb. The company's directors are also being probed by the CBI on charges of alleged forgery of documents to obtain loans for a fourth group company, Mahuaa Media Pvt Ltd.
Yogesh Sadhwani (MUMBAI MIRROR; January 7, 2015)

Pixion, one of India's most popular VFX studios and the go-to place for post-production for some of Bollywood's biggest filmmakers, is in deep financial trouble, with nine of the group's offices, including six in Mumbai, set to be auctioned by a consortium of banks next month.

Pixion Media Private Limited and its two sister concerns - Century Communication Ltd and Pearl Vision Pvt Ltd - owe Rs 1959 crore to the consortium of bank led by the Indian Overseas Bank. Surprisingly, the assets pledged as security with the banks by the three companies have been valued at a mere Rs 187.33 crore.

While the banks have moved in to auction Pixion assets, the company's directors P K Tewari and Anand Tewari are being investigated by the CBI on charges of alleged forgery of documents to obtain loans for a fourth group company -- Mahuaa Media Pvt Ltd.

Almost all top production houses in Bollywood have worked extensively with Pixion. In just 2013, Pixion worked on special effects for three big movies -- Krrish 3, Grand Masti, and Bhaag Milkha Bhaag.

A notice issued by the consortium has said the group's offices in Bandra, Khar, Oshiwara, Chennai and Noida have been attached and will be auctioned on February 9. Pixion now has only one office up and running in Bandra with around 120 employees.

According to the notice, Century Communication has failed to pay back loans taken from ten banks -- Indian Overseas Bank, Oriental Bank, State Bank of India, Canara Bank, Punjab National Bank, State Bank of Hyderabad, Bank of Baroda, Union Bank, Andhra Bank and Vijaya Bank. In August 2012, Century Communication's total outstanding to these banks was Rs 693.47 crore. By October 2014, the amount had risen to Rs 916.22 crore.

Pixion Media Pvt Ltd availed loans from six banks -- Indian Overseas Bank, Bank of Baroda, Oriental Bank, Bank of India, Vijaya Bank and State Bank of Hyderabad. The total amount due was calculated at Rs 504.52 crore in August 2012 and has since risen to Rs 695.42 crore.

Pearl Vision Pvt Ltd also took loans from six banks - Indian Overseas Bank, Oriental Bank, Bank of Baroda, Punjab National Bank, Syndicate Bank and Vijaya Bank. The total amount due to the bank was calculated at Rs 248.90 crore in August 2012. It now stands at Rs 347.83 crore.

The consortium issued proceedings against the group under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The total outstanding of the three companies is Rs 1959 crore.

As for Century Communication, their 7713 sq ft office at Pali Naka, Bandra; 2400 sq ft office in Khar; 6,000 sq ft office at Lotus Park (which recently caught fire) in Oshiwara; and sprawling offices in Noida and Chennai will go under the hammer. Pixion has two sprawling offices on 7th and 21st floors in Lotus Park in Oshiwara which will also be auctioned. Similarly, Pixion's offices in Noida and Pearl Vision's 2,400 sq feet workspace in Bandra will be auctioned.

Sources in the group revealed that after the fire at Lotus Park in Oshiwara in July 2014 their office has remained shut and employees have been asked to sit at home.

Several attempts to contact office bearers of the four group companies did not yield any results. Officials in Mumbai directed us to their headquarters in Noida. At Noida, members of the public relations team heard our query out and said that they would revert if they find it appropriate to do so. At the time of going to the press, they hadn't responded.