About 88.3% of the amount has been paid, while the remaining 2.9% is in the process of being paid. He will settle the remaining dues before the end of this fiscal year or before.
The Essel group founder, Subhash Chandra has settled 91.2 per cent of his debt with 43 lenders, and the remaining dues are in the process of being paid.
Subhash Chandra (71) founded Zee, a pioneer in private broadcasting in India, in 1992 but 27 years later, had to sell his holdings in the flagship to pare his financial liabilities. Chandra currently owns 4% in Zee, which had a market value of Rs 19,609 crore on Tuesday, August 3, 2021.
His journey from an 18-year-old who turned around family’s food grain processing business to becoming head of an eclectic Rs 30,000 crore (pre-crisis) empire is now part of corporate legend in India.
“I am happy to report that we have come out of the financial stress situation by settling 91.2% of our total debt to 43 lenders in 110 accounts. About 88.3% of the amount has been paid, while the remaining 2.9% is in the process of being paid. We are making all the required efforts to settle the remaining 8.8% of our total debt. I have no regrets for parting with a substantial ownership in the business and specially in the ‘jewels of the crown’. This was done to keep the family’s honour,” Chandra said in an open letter.
In his first Open Letter issued on January 25, 2019, Chandra had apologized for the hardships faced by the lenders due to the liquidity crisis triggered by the IL&FS case and committed to repay the monies to the best of his abilities by selling assets like his entire stake in Zee Telefilms to investors.
Sharing the key points pertaining to the debt resolution, Chandra said he will settle the remaining dues before the end of this fiscal year or before.
He also emphasized on the fact that he does not regret the decision taken to part with a substantial portion of his ownership in his key businesses, attributing this decision to preserve the honour of his family. He reiterated the exit from the infrastructure, financial services and loss-making print media businesses. Chandra shared his next steps in terms of setting up a venture in the video space in the digital ecosystem.
Chandra landed in difficulties due to aggressive bets made in infrastructure. The after-effect of the liquidity crisis triggered from the collapse of IL&FS also worsened his situation. He then sold his interests in infrastructure, financial services and print media. His other companies, Zee Learn, SITI Networks and Zee Media Corporation are currently facing a shortage of capital.
Dr. Chandra earlier had apologized for the hardships faced by the lenders due to the liquidity crisis triggered by the IL&FS case and committed to repay the monies to the best of his abilities. Backed by the immense support and trust bestowed upon him by the lenders, Dr. Chandra has managed to fulfill his promise.
The asset divestment process certainly took a setback during the pandemic, which slowed down the overall debt resolution process. Dr. Chandra aspired to release the mentioned second Open Letter after settling 100% of the debt to the lenders, however the unprecedented times led to a delay.
Chandra’s letter comes more than two and a half years after an admission of tactical mistakes that led to a default on loans and swelled his debt to Rs 11,000 crore.
Following repayments, debt has reduced to Rs 968 crore. Chandra, however, remains in dispute with one lender. “The issue is pending in the court for determination,” he wrote.
Dr. Chandra further elaborated on his earnest desire to settle the remaining outstanding dues before the end of this fiscal year or before. He also emphasized on the fact that he does not regret the decision taken to part with a substantial portion of his ownership in his key businesses, attributing this decision taken to preserve the honour of his family. He reiterated the exit from the Infrastructure, Financial services & Print Media businesses.
As a pioneer by heart and an optimist by nature, Dr. Chandra shared his next steps in terms of setting up a venture in the video space in the digital ecosystem. With a vast experience of 53 years, Dr. Chandra is all set to once again shake up the digital video landscape by leveraging state of the art technology.
Giving a glimpse into his new entrepreneurial venture, Dr. Chandra shared, “I have earned a fair experience in the video business; hence I am exploring new ways / business opportunities in the
“video in digital space” as well as AI/ML (Artificial Intelligence & Machine Learning) in the video space, without getting into any conflicts with ZEEL, in any manner. I will provide the specifics very soon and you all will witness the initial phase of launch, of a yet another pioneering venture.”
A global leader who takes immense pride in his roots and his Country and a firm believer of Vasudhaiva Kutumbakam (One World – One Family), Dr. Chandra continues to incessantly work towards helping the Nation eradicate its challenges to create a better tomorrow through a range of initiatives.
(India CSR)
