Chandra to settle debt, reclaim Dish
Essel Group founder Subhash Chandra is poised to settle the ₹6,500 crore debt it owes JC Flowers Asset Reconstruction Co. (ARC) for close to ₹1,500 crore to regain ownership of the family’s stake in assets, including Dish TV and Zee Learn, as well as three properties, including a bungalow in central Delhi. Chandra’s Essel Group reached an understanding to repay the settlement amount in a phased manner by 31 March and is close to signing a definitive agreement, two people with direct knowledge of the development said.
Mint first broke the story on 21 July that Chandra had initiated talks with JC Flowers to buy back his family’s stake in Dish TV for close to ₹1,500 crore. However, the two disagreed on the payment deadline, with JC Flowers ARC earlier insisting on full payment by 31 January. “Essel Group companies had a large exposure to JC Flowers ARC of ₹6,500 crore.
Sometime back, Chandra had approached with an offer to settle. It took over a month, but finally, they agreed to settle the loans. Some amount pertains to Dish TV, some to Zee Learn and some other properties.
The payment will be in phases, and accordingly, the shares of those companies will be transferred back," said one of the people on condition of anonymity. A JC Flowers spokesperson declined to comment on Mint’s query, while queries sent to Essel Group did not elicit any response. The second person, also on condition of anonymity, said this is just a transfer back of the encumbered shares, so it will not trigger an open offer.
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