Online gaming and sports media companysaid that two of its step-down subsidiaries that hold accounts in the beleaguered (SVB) are unlikely to be impacted due to the shutdown of the bank by California regulators on Friday.
In its filing with the bourses, Nazara informed that Kiddopia Inc and Mediawrkz Inc hold a balance of $7.75 million cumulatively in their SVB accounts. While Kiddopia is a 100% subsidiary of Paper Boat Apps, which counts Nazara as a majority shareholder, Mediawrkz Inc is a 100% subsidiary of Datawrkz Business, in which Nazara holds a 33% stake.
“FDIC (Federal Deposit Insurance Corporation) has stated that it would issue an advance dividend to depositors within the next week with future payments coming as asset sales occurred. Regardless of the ultimate outcome and its timing, both subsidiaries continue to be well capitalised and are generating positive cash flows along with profitability,” said the filing.
It further added that it expected no impact on the day-to-day operations, business performance, and growth plans of the companies in light of SVB’s shutdown. The filing assured shareholders that Nazara continues to maintain cash and cash equivalent reserves in excess of Rs 600 crore, excluding the funds held by the step-down subsidiaries.
These companies join a list of over 1,000-plus Indian startups, especially those with US entities, that have been impacted as part of the events. Ahead of the shutdown, venture capital and private equity funds advised portfolio companies to withdraw their money from SVB accounts and look for other lenders.
By Friday, the bank was shut down and the FDIC was nominated as the receiver. At present, account holders at SVB can only withdraw up to $250,000 from their accounts subject to available balance.
SVB is the banker to multiple venture capital and private equity funds, global startups, technology companies and High Networth Individuals.