Deccan Chronicle plan gets NCLT nod
Kolkata-based Srei group gets the trouble-hit media house for Rs 408.06 crore
Hyderabad: Giving a new lease of life to scam-hit Deccan Chronicle Holdings Limited (DCHL), the Hyderabad Bench of National Company Law Tribunal (NCLT) on Monday issued much-awaited orders approving the Rs 408.06 crore Resolution Plan submitted by Vision India Fund of Kolkata-based Srei Multiple Asset Investment Trust (SMAIT).
"Resolution Plan dated 11.12.2018 submitted by Resolution Applicant Srei Multiple Asset Investment Trust Vision India Fund, which was approved by members of CoC having 81.39 per cent voting share stands approved subject to reliefs referred to…as per Section 31(1) of the Code (IBC).
In other words, I am satisfied with the Resolution Plan as approved by Committee of Creditors under Section 30 (4) of the Code and it meets the requirement as referred to in Section 30 (2) of IBC, 2016," Ratakonda Murali, Member (Judicial), Court-I of NCLT's Hyderabad Benz, said in his 28-page order on Monday.
He further said: "Therefore the plan stands approved and the same is binding on corporate debtor (DCHL), its employees, members, creditors, gaurantors and stakeholders involved in the resolution plan".
Of Rs 408.06 crore that Srei has committed for DCHL, financial creditors (banks) will get Rs 350 crore while the remaining amount will go to employees and operational creditors.
The NCLT also gave some clarity on the tax arears to the tune of over Rs 3,000 crore for which the Resolution Applicant sought complete waiver.
"It is clear that till date no claim is made before the Resolution Professional by the IT Department. The Resolution Applicant has nothing to do with the tax liability crystallized prior to commencement of CIRP," the order said.
The corporate insolvency resolution process (CIRP) of DCHL began in July 2017 after Canara Bank knocked at the doors of Hyderabad Bench of NCLT after the media house defaulted on repayments on its loans.
The media house owed a whopping over Rs 8,000 crore to various banks and financial institutions. The resolution process took nearly two years.
According to the orders, the Resolution Applicant (Srei) should obtain necessary approval required under any law for the time being in force within a period of one year from the date of approval of the plan.