The insolvency proceedings of debt-ridden Deccan Chronicle Holdings (DCHL) finally found a new management with the acceptance of the revised proposal put forth by Vision India Fund for Rs 400 crore. The committee of creditors (CoC), which completed the e-voting process on Friday, approved the resolution proposal submitted by Vision India Fund, part of the Srei group, for a consideration of around `400 crore.
Sources in the know said that 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 35 creditors were recognised as certified lenders by Mamta Binani, the (IRP) appointed by the National Company Law Tribunal (NCLT), Hyderabad, for the insolvency resolution process, and were requested to vote for the resolution plan prepared by the IRP.
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 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. DCHL carries a total debt of over `7,500 crore on its books.