Hyderabad-based media group Deccan Chronicle Holdings Ltd (DHCL) may see a change in management if the fresh bid by Vision India fund, managed by Srei Alternative Investment Managers Ltd (SAIML), for the debt-laden company is accepted by the bankers.
Hyderabad-based media group Deccan Chronicle Holdings Ltd (DHCL) may see a change in management if the fresh bid by Vision India fund, managed by Srei Alternative Investment Managers Ltd (SAIML), for the debt-laden company is accepted by the bankers.
Vision India Fund's fresh proposal is for a one-time settlement of Rs 400 crore instead of a staggered payment spread over five years, including provisions to pay off the financial creditors. The Committee of Creditors (CoC) is expected vote on the new bid this week.
"The CoC will now have to evaluate the bid and vote," said a banker, who also has an exposure to the company.
In July Vision India Fund had put in a bid for Rs 800 crore, but it was for a staggered payment over five years, which was not accepted by the lenders. The bid got only 55% of the voting in its favour with banks like ICICI Bank, which owned 10% of the debt, had voted against the resolution plan though the bid price was higher than the liquidation price.
NCLT's Hyderabad Bench in August had directed the CoC to examine the revised resolution plan submitted by Srei's Vision India Fund following the extension of the insolvency resolution period by the appellate tribunal. SAIML has also got a favourable order from the National Company Law Appellate Tribunal (NCLAT) to be recognised as a financial creditor and be given a place on the CoC. Earlier it was denied the status of a financial creditor by the court saying that Srei group has a shareholding in the company.
Deccan Chronicle, which published the English daily Deccan Chronicle, Andhra Bhoomi, the Telugu daily and the financial daily 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 plan were shelved before it came to NCLT. "The unpaid loans admitted in 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 87 days to 357 days. According to the claims approved by the resolution professional, the company owes close to Rs 8,000 crore to lenders and other operational creditors.
RENEWED EFFORT
- In July its Vision India Fund had put in a bid for Rs 800 crore, but it was for a staggered payment over five years, which was not accepted by the lenders
- The bid got only 55% of the voting in its favour with banks like ICICI Bank, which owned 10% of the debt, had voted against it
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