The network will be acquired by Goblin India, a luggage manufacturer, and Khandwala Finstock, a financial services firm.
The National Company Law Tribunal (NCLT) has approved a joint acquisition proposal by Goblin India, a luggage manufacturer, and Khandwala Finstock, a financial services firm, for the bankrupt Television Home Shopping Network as reported by The Economic Times.
The approved plan involves a merger or reverse merger of Khandwala Finstock with the company operating TV home shopping channels. The resolution plan includes upfront payments of Rs 19.65 lakh and Rs 35.34 lakh to secure financial and operational creditors, respectively, within 25 days of NCLT approval. Television Home Shopping Network faced total claims of Rs 397 crore, with secured financial creditors claiming dues of Rs 19.65 crore and operational creditors amounting to about Rs 377 crore.
The initiation of the corporate insolvency resolution process against Television Home Shopping Network stemmed from an application by cable TV distribution firm Siti Networks, which claimed dues of Rs 43.68 lakh along with an 18% interest. Siti's petition was accepted by the NCLT on March 3 this year.
Additionally, Treasure Retail filed a petition claiming dues of Rs 1.38 crore against the company, which was admitted by the tribunal on May 12. The recent NCLT order came in response to an application filed by the company's resolution professional, Darshan Patel, seeking approval for the sole resolution plan submitted by Goblin India and Khandwala Finstock on August 4. The NCLT directed Goblin and Khandwala Finstock to seek reliefs, waivers, concessions, and approvals from appropriate forums separately.
The tribunal clarified that claims not included in the resolution plan would be extinguished.