Insolvency proceedings: DCHL resolution professional admits Rs 79 bn claims

Lenders and prospective suitors of Deccan Chronicle Holdings (DCHL) may have to take a tough call on outstanding loan dues of a whopping Rs 78.60 billion before proceeding with a possible insolvency resolution plan. The liabilities of the debt-laden media company seem to outsize its assets and income by any measure.

Resolution professional (RP) Mamta Binani has admitted loan dues of Rs 78.60 billion, which include a claim of Rs 77.02 billion from 31 financial creditors and Rs 1.5 billion from 16 operational creditors in an ongoing insolvency resolution process initiated against DCHL by Hyderabad Bench of National Company Law Tribunal (NCLT) in July last year. The RP has disallowed the loan claims amounting to Rs 30 billion. 

Canara Bank had filed an application in May 2017, requesting the tribunal to initiate insolvency resolution against the company.

Total eight entities, including two big media houses — Times Group and HT Media — had filed expressions of interest (EoI) in the company's resolution process over a month ago. None of them were yet to respond to an April 20 notification through which the RP has invited prospective suitors to submit their resolution plans by April 27, sources told Business Standard.

Names of other entities that had filed EoIs are Srei Infra, Essel Group, Adoniss, iLabs, ARCIL and Asianet.