The National Company Law Tribunal (NCLT) has approved a proposal jointly submitted by luggage manufacturer Goblin India and financial services firm Khandwala Finstock for the acquisition of bankrupt Television Home Shopping Network.
The proposal includes a merger or reverse merger of Khandwala Finstock with the company that operates TV home shopping channels. All the members on the company’s committee of creditors approved the plan at a meeting on August 6.
The joint resolution plan includes upfront payments of Rs 19.65 lakh and Rs 35.34 lakh to secured financial and operational creditors, respectively, within 25 days of the NCLT approval, said counsel Nausher Kohli, who appeared in the case for the successful bidders.
Each of the operational creditors also has the option to subscribe to 6% of the 1,60,00,000 partly paid (Rs 5 paid) non-cumulative, non-participating, and redeemable preference shares having a face value of Rs 10 each, redeemable at the end of 15 years from the date it becomes fully paid-up.
The partly paid preference shares are proposed to be allotted in proportion to the admitted claims which remain unpaid after the upfront cash payment.
Formerly known as TV18 Home Shopping Network, Television Home Shopping Network operates TV home shopping channels and an ecommerce marketplace under the brand name HomeShop18.
In 2019, real estate firm Skyblue Buildwell acquired a controlling stake in HomeShop18 from Network18, which owned TV18 Home Shopping Network.
The tribunal noted that the approval of the resolution plan must not be construed as a waiver of any statutory obligations of Television Home Shopping Network.
There had been total claims of Rs 397 crore against the company. Of this, claims of Rs 16.56 crore had been admitted. Secured financial creditors had claimed dues of Rs 19.65 crore, while operational creditors (government dues) amounted to about Rs 377 crore.
The process for corporate insolvency resolution was initiated against the company on an application by cable TV distribution company Siti Networks, which had claimed dues of Rs 43.68 lakh along with an 18% interest.
Siti’s petition was admitted by the NCLT on March 3 this year. Treasure Retail’s petition claiming dues of Rs 1.38 crore against the company was also admitted by the tribunal on May 12.
The latest NCLT order came on an application filed by the company’s resolution professional, Darshan Patel, seeking approval for the sole resolution plan submitted by Globlin India and Khandwala Finstock on August 4.
The NCLT has directed Goblin and Khandwala Finstock to approach appropriate forums separately for the reliefs, waivers and concessions/approvals sought in the resolution plan.
The tribunal said claims that were not part of the resolution plan would stand extinguished.
Source: Economic Times