The National Company Law Tribunal (NCLT), Hyderabad bench, has approved and passed the order regarding the resolution plan submitted by Srei Multiple Asset Investment Trust Vision India Fund for debt-ridden Deccan Chronicle Holdings (DCHL). The resolution was submitted on December 11, 2018, and was approved by the members of CoC, having an over 81.38% voting share for a consideration of over `400 crore.
There are over 37 financial creditors to DCHL,and as per estimates, the total debt is over `7,500 crore on its books. Sources in the know said the majority of amount will go to the financial creditors, including banks and other financial institutions. Srei Infrastructure Finance acted as security creditor and Vision India Fund emerged as the highest bidder for DCHL.
The Hyderabad-based media house, which publishes Deccan Chronicle, Andhra Bhoomi and others, was in the Corporate Insolvency Resolution Process (CIRP). About 37 creditors were recognised as certified lenders by Mamta Binani, the RP appointed by the NCLT, Hyderabad, for the insolvency resolution process, and were requested to vote for the resolution plan prepared by the RP.
Canara Bank, one of the major lenders to the media house, knocked on the NCLT’s doors in May 2017, seeking insolvency proceedings against DCHL under IBC as it defaulted on its loan. Earlier, it lodged a complaint with the CBI against the DCHL promoters. NCLT kicked off insolvency proceedings against DCHL under Section 7 of the IBC 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.