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Bollywood film producer Manmohan Shetty's entertainment theme park, Imagicaaworld Entertainment, could be auctioned by lenders later this month. Privately owned Malpani Group, with interests in real estate and theme parks, has given an updated offer of Rs 575 crore to procure the debt-laden asset. Malpani Group's sweetened offer comprises Rs 500 crore in upfront payments and a 15% share to the lenders upon conversion of Rs 75 crore of debt into equity. Imagicaaworld, earlier called Adlabs Entertainment, has total debt of Rs 1,417 crore as of March 31, 2021. The offer of Rs 575 crore would equate to a recovery of 40% for lenders. But if the equity offer is barred, the offer equates to a recovery of 35%. Malpani had improved the offer to Rs 575 crore in January itself but some lenders, comprising Canara Bank, were seeking the entire Rs 575 crore in upfront payments. Last week, all lenders comprising Canara Bank gave their consent for the updated structure. Malpani Group is in discussions with a few asset reconstruction companies to take part in the Swiss auction. An out-of-court resolution of Imagicaaworld has been in the works for the past three years. In 2019, Union Bank of India declined the promoter Shetty's Rs 575-crore one-time settlement offer on expectations of higher proposals. In May 2021, Dream Media Works had provided an unsolicited offer of Rs 725 crore. That proposal had encouraged lenders to restart an out-of-court resolution process of the theme park-cum-entertainment firm. Yet, negotiations with Dream Media did not move ahead since it failed to make an earnest money deposit with lenders. Union Bank of India, which is the lead bank, has the highest outstanding loan of Rs 429 crore, followed by Bank of Baroda at Rs 320 crore, the bid document released by Bob Caps displayed. Image Source Also read: Imagicaaworld Entertainment creditors may involve ARC to sell firm