The insolvency proceedings of debt-ridden Deccan Chronicle Holdings (DCHL) failed to get a successful bidder. The committee of creditors (CoC), which completed the e-voting process, did not approve the resolution proposal submitted by the insolvency resolution professional (IRP). Following this, the next plan of action could be a liquidation process for the company after a court hearing. “The members of the committee of creditors cast their votes electronically. The voting started yesterday and today. But only 55% creditors approved the plan as against 66%, thereby leading to the rejection of the resolution plan,” sources close to the development said.
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. Sources in the know said Srei Infrastructure Finance and Arm Infra of the Zee Media group were in the fray, besides a few other companies and media houses.
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 Rs 7,500 crore on its books.