The National Company Law Tribunal (NCLT) has approved the proposal jointly presented by Goblin India, a luggage manufacturer and Khandwala Finstock, a financial services firm, for the acquisition of the bankrupt Television Home Shopping Network.
The proposal involves merging or doing a reverse merger with Khandwala Finstock and the company running TV home shopping channels, according to media reports.
On August 6, all members of the company’s committee of creditors gave their approval to the proposal at a meeting, as per the reports.
The resolution plan involves paying Rs 19.65 lakh to secured financial creditors and Rs 35.34 lakh to operational creditors within 25 days of NCLT approval, said Nausher Kohli, the counsel representing the successful bidders in the case.
Every operational creditor can choose 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, as per the media reports.
The suggestion is to distribute the partly paid preference shares based on the unsettled claims that still need payment after the initial cash payment.
The tribunal emphasised that approving the resolution plan should not be seen as waiving any statutory obligations of Television Home Shopping Network.
The company faced total claims amounting to Rs 397 crore. Among these, admitted claims were Rs 16.56 crore. Secured financial creditors claimed dues of Rs 19.65 crore and operational creditors (government dues) accounted for around Rs 377 crore.
The company faced corporate insolvency resolution proceedings after cable TV distribution company Siti Networks filed an application, asserting dues of Rs 43.68 lakh with an 18% interest. The NCLT accepted Siti's petition on March 3. Additionally, Treasure Retail's claim of Rs 1.38 crore in dues was acknowledged by the tribunal on May 12.
The recent NCLT order is based on a request from the company's resolution professional, Darshan Patel. The application sought approval for the only resolution plan, submitted by Globlin India and Khandwala Finstock on August 4.
The NCLT has instructed Goblin and Khandwala Finstock to seek reliefs, waivers, and approvals separately for their resolution plan through the appropriate forums. The tribunal clarified that any claims not included in the resolution plan would be considered as extinguished.
Previously named TV18 Home Shopping Network, Television Home Shopping Network runs TV home shopping channels and an online marketplace under the brand HomeShop18.
In 2019, Skyblue Buildwell, a real estate company, gained a controlling stake in HomeShop18 from Network18. Network18 was the owner of TV18 Home Shopping Network.