Essel Group Chairman Dr. Subhash Chandra once again issued an open letter on Tuesday. In this, he shared the details of the process and steps to pay the lenders.
What Subhash Chandra said, he kept his promise; 91% loans of 43 lenders paid off.
Essel Group Chairman Dr. Subhash Chandra once again issued an open letter on Tuesday. In this, he shared the details of the process and steps to pay the lenders. In his letter, Dr. Chandra disclosed that more than 91 percent of the loans of 43 lenders have been settled. The remaining balance will also be paid soon.
Essel Group chairman Subhash Chandra on Tuesday claimed that he has pulled his own conglomerate out of the financial stress caused by debt. He also announced a new digital video venture.
In an open letter, Chandra said the group has come out of financial stress by settling 91.2 per cent of the total debt of 43 financial institutions. Out of the total loan, 88.3 per cent has been repaid while the balance 2.9 per cent is under process.
Apologizing to the lenders for the problems, he said there are wide differences of opinion with one lender over the outstanding amount and it is being resolved through court.
He expressed confidence that the group would clear all outstanding loans by the end of the financial year.
The first letter was issued on 25 January 2019.
Dr. Chandra (Dr. Subhash Chandra) had earlier released the first open letter on 25 January 2019. In that open letter, Dr. Chandra expressed regret for the hardships faced by the lenders due to the liquidity crisis arising out of the IL&FS case. He had made it clear that he was committed to clear the dues of all the defaulters to the best of his ability. The lenders reposed full confidence on this promise of theirs and they gradually managed to fulfill it.
The asset divestment process got hit due to the Corona pandemic. Due to which the overall debt resolution process also slowed down. Dr. Chandra wanted him to issue a second open letter only after he has repaid the loan 100% of all the lenders. However, due to the Corona epidemic and other reasons, this got delayed. That’s why they are issuing this open letter even before that.
Sharing the details of key points related to loan resolution, Dr. Subhash Chandra said, “I am happy to share that we have settled 91.2% of the total loans in 110 accounts of 43 lenders. 88.3% of the amount has been paid, while the remaining 2.9% is in the process of payment. Thus we have come out of the state of financial stress. All necessary efforts are also being made to settle the remaining 8.8% debt.
Dr. Subhash Chandra emphasized on the fact that he had taken this decision to maintain the honor of his family and he has no regrets on it. He said, ‘I have no regrets about parting with a large part of the business I own, and especially from ‘Jewel of the Crown’. This was done to save the honor of the family. Dr. Chandra elaborated his sincere desire to settle the balance dues on or before the end of this financial year.
Important information Subhash Chandra claims Essel Group has repaid 91 percent debt, announces digital video venture.
Dr. Subhash Chandra reiterated his point of exit from the infrastructure, financial services and print media businesses. Rich at heart and optimistic by nature, Dr. Chandra also told about his next step. He said that he is going to set up a venture in the video space of the digital ecosystem. With his vast experience of 53 years, Dr. Chandra said that he is all set to rock the digital video landscape once again by leveraging state-of-the-art technology.
Giving a glimpse of his new venture, Dr. Subhash Chandra said, ‘I have gained a good amount of experience in the video business. That’s why I am exploring new ways and business opportunities in AI/ML (Artificial Intelligence & Machine Learning) along with video in the digital space. So that any kind of conflict with ZEEL can be avoided. I will provide the details very soon and you all will see another leading venture launched.
The Essel Group chief’s statement comes exactly 30 months after he alleged foul play in bringing down the stock price of flagship company Zee Entertainment Enterprises (ZEEL).
It is noteworthy that Chandra, who has grown business aggressively in several sectors, was looking to sell promoter stake in the company to reduce debt of over Rs 11,000 crore.
There was a strong sell-off in the shares amid the promoters’ idea of selling stake, which brought down its price. On this, Chandra had alleged wrongdoing and sought time from the lenders for repayment of the loan.
Chandra said on Tuesday that he exited infrastructure, financial services and print media businesses to pay off the outstanding debt and sold them.
“I have no regrets about it… and took this step out of respect for the family,” he said.
Even now, some of the group companies like Zee Learn, Citi Networks and Zee Media Corporation are facing capital crunch and are going through a ‘difficult phase of their existence’,” Chandra said.
Chandra also apologized to his brother Jawahar Goyal, saying that his company Dish TV India is also affected because of him.
He also announced the launch of a new venture. The venture will focus on the digital video segment and will have no conflict of interest with ZEEL.
Dr. Chandra (Dr. Subhash Chandra) is such a global leader who takes great pride in his roots and his country. He firmly believes in the spirit of ‘Vasudhaiva Kutumbakam’. Dr. Chandra through his many initiatives is working towards creating a better tomorrow and helping the nation overcome the challenges.
Venture capitalist Vallabh Bhansali made this comment.
Renowned Investment Banker, Venture Capitalist and Chairman of ENAM, Vallabh Bhansali has commented on Dr. Subhash Chandra’s open letter. He said, “Our 40 years of friendship with Subhash ji has always been a matter of pride. I don’t mind saying that while his achievements as a visionary businessman have been remarkable, his sacrifice to protect his honour is more than that.
Admitting his mistakes publicly also shows his humility. In that sense, I can’t think of any other person like him in my business career spanning 50 years.