Unrestricted access given to subsidiaries to cash held at crisis-hit SVB: Nazara Technologies

New Delhi [India], March 15 : Listed mobile gaming company Nazara Technologies on Wednesday said two of its step-down subsidiaries Kiddopia Inc and Mediawrkz Inc have been given unrestricted access to the entire amount of Rs 64 crore that was held at failed Silicon Valley Bank.
"We would like to inform that both the companies i.e., Kiddopia Inc and Mediawrkz Inc have been given unrestricted access to the entire amount of USD 7.75mn (~INR 64 crores) that was held at SVB," the company said in a regulatory filing.
"From this amount, a sum of USD 7.25mn (~INR 60 crores) has been transferred to bank accounts outside of SVB and the balance amount of USD 0.5mn (~INR 4 crores) remains in SVB accounts for unrestricted operational use."
On Sunday, it informed exchanges that the subsidiaries hold cash balances worth Rs 64 crore at US-based Silicon Valley Bank (SVB), which collapsed on Friday.
Kiddopia Inc is a 100 per cent subsidiary of Paper Boat Apps Private Limited (owned 51.5 per cent by Nazara) and Mediawrkz Inc is a 100 per cent subsidiary of Datawrkz Business Solutions Private Limited (owned 33 per cent by Nazara).
Further, Nazara Group had earlier said the group and its subsidiaries continue to maintain "healthy reserves of cash and cash equivalents" in excess of Rs 600 crore, excluding the SVB-impacted funds which it said now got unrestricted access.
One of the most prominent lenders in the world of technology startups, Silicon Valley Bank, which was struggling, collapsed on Friday, forcing the US federal government to step in. The crisis-hit bank's shares tumbled over 60 per cent this week, data showed.
Regulators closed down the tech lender and put it under the control of the US Federal Deposit Insurance Corporation (FDIC).
The FDIC is acting as a receiver, which typically means it will liquidate the bank's assets to pay back its customers, including depositors and creditors.