Subhash Chandra, founder of the Essel Group, is making arrangements to clear debts owed to JC Flowers Asset Reconstruction Co., totaling an approximate sum of Rs 6,500 crore.
Chandra, as per reports, has put forth a proposal to settle around Rs 1,500 crore for his family’s stake in various assets, encompassing Dish TV, Zee Learn, and three properties, including one in Delhi.
Turns out, Essel Group has reached an understanding to fulfill the debt settlement gradually by March 31. The payment is said to be made in phases. A definitive agreement is being prepared for the same.
Discussions for the repayment were underway for months now and it took close to a month for both parties to come to a settlement.
A portion of the debt is reportedly linked to Dish TV, another portion to Zee Learn. There are additional assets that are also involved. As part of the repayment arrangement, ownership of shares in these companies will be reinstated.
If the transaction goes through as planned, the family’s shareholding will rise to 28.2 percent from JC Flowers 24.19 percent stake in Dish TV. As per rules, if an entity’s ownership in a company crosses 25 percent, it needs to make an open offer for another 26 percent. However, this settlement is expected to avoid triggering an open offer, being classified as a straightforward transfer of the pledged shares.
The shares are intended to be returned to Jawahar Goel, Chandra’s brother, who was running Dish TV before Yes Bank invoked the pledged shares in May 2020.