The legal team that advised on the Deccan Chronicle Holdings insolvency had to contend with multiple issues and challenges. The National Company Law Tribunal (NCLT) approved the resolution plan put forward by SREI Multiple Asset Investment Trust, after 81% of the committee of creditors (CoC) voted in favour of it.
“The matter and the process itself was highly complicated,” said Piyush Mishra, a partner at AZB & Partners. “[There were] multiple banking arrangements, competing security interests, various litigations in relation to assets of the company, investigations by government authorities and a peculiar structure of repayment in the resolution plan.”
Mishra said that as the security structure of the CoC was based on bilateral lending arrangements with about 39 banks, it posed many challenges for the process. SREI’s plan involves providing ₹3.5 billion (US$50 million) to category A financial creditors, while category B financial creditors will be permitted to sell non-core assets for the realization of their debt. Operational creditors are to receive ₹60 million.