NCLT asks Deccan Chronicle RP to refer Srei arm's revised proposal to CoC

The Hyderabad bench of National Company Law Tribunal (NCLT) on Monday directed the resolution professional (RP) of Deccan Chronicle Holdings Limited (DCHL) to place the revised resolution proposal of Srei's investment arm, Vision India Fund, before the Committee of Creditors(CoC) for consideration.

In June, the resolution professional had approached the adjudicating authority, seeking directions in this regard as the resolution applicant had filed its modified plan at the last hour on the concluding day of mandatory resolution period after the CoC rejected the original plan with close to 44 per cent dissenting votes.  

On August 1, the National Company Law Appellate Tribunal (NCLAT) had extended the resolution period by another 180 days, besides directing the CoC to treat Srei as a financial creditor and include it in the decision-making process.

The resolution applicant informed the tribunal that the resolution plan has proposed an upfront payment of Rs 3.68 billion with the provision to increase in the CIRP costs, payments to workmen and dissenting financial creditors. The applicant further argued that the resolution of the insolvency of the corporate debtor is more beneficial to the CoC than to put the corporate debtor into liquidation. 

Resolution Professional Mamata Binani also requested the bench to give one more opportunity to the resolution applicant by way of asking the CoC to examine the revised proposal. Member (Judicial) of NCLT bench Ratakonda Murali issued the orders, while asking the resolution professional to place the revised proposal before the CoC in its next meeting.