Delay in Deccan Chronicle insolvency process likely
The insolvency process of trouble-hit Deccan Chronicle Holdings Limited (DCHL) is likely to get further delayed owing to new interim applications (IA) being filed by lenders in NCLT court.
Hyderabad: The insolvency process of trouble-hit Deccan Chronicle Holdings Limited (DCHL) is likely to get further delayed owing to new interim applications (IA) being filed by lenders in NCLT court.
According to the cause list of the National Company Law Tribunal (NCLT), Hyderabad Bench, Court-I, two more IAs will come up for admission even as Committee of Creditors (CoC) will meet on Thursday to vote on the resolution proposals submitted by those interested in acquiring the debt-strapped media house which publishes Deccan Chronicle daily, Andhra Bhoomi and some other publications.
Besides, final orders on IA No 218/2018 filed by IndiaBulls Housing Limited will also be announced on Thursday. IndiaBulls already recovered part of its loan given to DCHL by selling assets offered as security. It filed the interim application seeking orders from the court to the effect that it should be part of the resolution process and treated as secured creditor to recover the remaining loan amount.
The extended deadline for completing the insolvency process will end on July 10. For the first time in the country, NCLT court has given 357 days for completing the process. It’s very unlikely that court will extend the deadline further.
In this context, interim applications filed by IndiaBulls and others are likely to delay the process further. Fearing this and in protest against pressures, counsel for Insolvency Resolution Professional (IRP) Mamta Binani reportedly submitted resignation on Tuesday. However, the resignations were not accepted as changing counsel at this juncture would throw entire resolution process into chaos.
It is said that proposals submitted by Kolkata-based Srei Infrastructure, Vision India Fund and others will be taken up for voting at CoC meeting. People in know of insolvency proceedings say that DCHL resolution process will not yield more than Rs 800 crore. As DCHL has nearly Rs 7,000 crore debt on its books, secured creditors will have to take more than 80 per cent haircut.