Reliance Broadcast Network (RBNL), which is undergoing bankruptcy proceedings, has received two bids – from Radio Mirchi and Sapphire FM – of Rs 251 crore each for its radio channel Big FM.
FM radio network Radio Mirchi, a part of Entertainment Network India (a subsidiary of Bennett, Coleman & Company), has submitted the bid in a consortium with Radio Orange of Nagpur. The other bid for the former Anil Ambani group company is from Haryana-based Sapphire FM, sources close to the development said.
Both the bidders have offered to pay within 30 days. Sources say that the lenders have initiated discussions with the two resolution applicants to revise their bids upwards.
With about `60 crore of cash lying in the company’s accounts, the lenders expect a total recovery of as high as 55-60% against the total admitted claims of `578 crore.
Big FM is the country’s largest radio network with 58 stations, with a reach across 1,200 towns and over 50,000 villages. Earlier in February this year, RBNL was admitted under the Corporate Insolvency Resolution Process (CIRP) by the Mumbai bench of the National Company Law Tribunal (NCLT).
The lenders who have raised claims include IndusInd Bank (Rs 172 crore), HSBC Asset Management (Rs 238 crore), Franklin Templeton MF (Rs 103 crore) and Reliance Commercial Finance (Rs 64 crore).
IDBI Trusteeship Services, on the behalf of L&T Investment Management, had filed an insolvency application after RBNL failed to repay a debt of `175 crore. The bankruptcy court had also appointed Rohit Ramesh Mehra as its resolution professional.
L&T Investment Management had subscribed to non-convertible debentures (NCDs) worth `200 crore issued by RBNL in three tranches between 2015 and 2016.
IDBI Trustee Services was the trustee for L&T Investment Management Services, while Reliance Capital was the guarantor for RBNL. At the time of redemption of the NCDs in 2020, RBNL failed to make the payment.