afaqs! news bureau

Subhash Chandra to settle Essel Group's debts with JC Flowers ARC

Essel Group has reportedly agreed to repay the settlement in a phased manner by March 31.

As per the reports, Subhash Chandra, the founder of Essel Group, i taking steps to settle the conglomerate's outstanding debts with JC Flowers Asset Reconstruction Co., amounting to Rs 6500 crore. Chandra has proposed a payment of approximately Rs 1500 crore to cover his family's stake in various assets, including Dish TV and Zee Learn. The settlement also involves transferring ownership of three properties, including a Delhi-based bungalow.

The proposed settlement is expected to occur in phases, with a target completion date of March 31. Negotiations included a disagreement over the payment deadline, with JC Flowers ARC advocating for a January 31 deadline, which Chandra's camp resisted.

Chandra's offer to initiate the settlement process followed about a month of discussions. A portion of the debt pertains to Dish TV, Zee Learn, and other real estate properties. The settlement entails transferring shares from these companies based on the agreed payment terms.

The settlement is not anticipated to trigger a mandatory open offer. Instead, it involves the transfer of encumbered shares, expected to be returned to Jawahar Goel, Subhash Chandra's brother, who previously had a leadership role at Dish TV. Yes Bank had previously invoked pledged shares in May 2020.

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