The insolvency proceedings against the Hyderabad-based media house Deccan Chronicle Holdings Ltd was expected to get a consensus, but it fell short by 10%
The committee of creditors to the media group Deccan Chronicle has failed to get the consensus for a change in management of the company, with only 55% of the lenders voting in favour of the resolution.
ICICI Bank, which owned 10% of the debt, voted against the resolution plan. Vision India fund promoted by Srei Alternative Investment managers Ltd was the highest bidder with over Rs 800 crore. The other bidders were Zee Group and Times Group.
Pulak Bagchi, group legal head, Srei, said, "There was only 55% voting in favour, so the plan fell short of majority, but we are in discussion with the lenders to find an amicable solution. Deccan Chronicle being an iconic brand down South has a lot of value."
"The bids were much higher than the liquidation value so they were not rejected because of being too low," said a source close to the development.
The insolvency proceedings against the Hyderabad-based media house Deccan Chronicle Holdings Ltd was expected to get a consensus, but it fell short by 10%. If 66% of the lenders had voted in favour of the resolution, then the plan would have gone through.
"We will have to open the bidding process once again or see if the bids can be improved or leave it to the NCLT to decide the next course of action," a lender said.
Deccan Chronicle, which publishes Deccan Chronicle, Andhra Bhoomi and Financial chronicle, had a number of takers, but the bids were too low.
IDBI Bank, which had the rights to its trademark was also trying to sell them, but the bids were too low and the plans were shelved before it came to the NCLT. "The unpaid loans that are admitted in the NCLT has no lead banker as it is a bunch of multiple loans that were clubbed together," said a source close to the development.
NCLT kicked off insolvency proceedings against the media house under Section 7 of Insolvency and Bankruptcy Code in July 2017 and set a 270-day deadline for completion of the process. The deadline was later extended by another 87 days to 357 days. DCHL carries a total debt of over Rs 7,000 crore on its books.
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