Srei Group's plan for DCHL resolution falls short of creditors' votes

Srei Group’s resolution plan for debt-ridden Deccan Chronicle Holdings Limited (DCHL) secured just 55 per cent of votes against the required percentage of 66 by the Committee of Creditors (CoC) on Tuesday, the last day of the deadline.

After the voting ended, applicant firm India Vision Fund submitted a modified plan in a last-ditch effort to stay in the ring, but there was no immediate response from the CoC, sources said.

“The mood of the house was in favour of the resolution as had been reflected in the voting pattern,” resolution professional Mamata Binani told Business Standard on Wednesday.

While she refused to comment on the voting outcome, an official of a public sector bank said the plan lacked  clarity over who would get how much money. “In addition to the lack of clarity, the amount of money offered in the plan was not distributed equally among the creditors,” said the bank official.  

A Rs 10-bn resolution plan by the Srei involves infusion of some cash, assets and also the claims from the BCCI in each of which the existing lenders were offered a share, sources said.