NCLT appoints IRP for insolvency process against Deccan Chronicle

The Hyderabad bench of the National Company Law Tribunal (NCLT) on Wednesday appointed an interim resolution professional to initiate insolvency process against the ailing media house Deccan Chronicle Holdings in a petition filed by one of its lenders Canara Bank.

Canara Bank had filed the insolvency petition before NCLT claiming that Deccan Chronicle Holdings, which publishes dailies Deccan Chronicle, Financial Chronicle and Andhra Bhoomi, had defaulted over Rs 723 crore.

The NCLT bench, which had last fortnight admitted the petition of Canara Bank filed under Insolvency and Bankruptcy Code (IBC) 2016, heard the arguments of the media house and its lender and pronounced its orders on Wednesday.

The bench has appointed the interim resolution professional to manage day-to-day affairs at Deccan Chronicle and convene meetings of all creditors to find resolution to revive the media house’s operations within 30 days.

The creditors can either continue with the same resolution professional even after 30 days or appoint a permanent resolution professional, the Canara Bank’s council Dishit Bhattacharjee told ET.

The bench also ordered a moratorium of 180 days wherein no creditors can take any legal action against the media house with all the ongoing cases stayed. The creditors were directed to make all their claims before the resolution professional appointed by the bench, he said.

The resolution professional will be required to report to the bench the outcome of insolvency initiatives after 180 days.

A senior executive of Canara Bank, who did not want to be identified, said the lender was considering a proposal to avail the services of one of the big four accounting firms in the insolvency process.