DishTV India has refuted a media report that said the satellite TV broadcaster’s promoters had reached a settlement over loan by agreeing to pay ₹1,500 crore.
What Happened: DishTV said in an exchange filing that it was “neither aware of nor privy to the negotiations” mentioned in the media report and can therefore neither confirm or deny the same.
Last week, media reports said there was investor speculation that the Essel Group’s Goel family, promoters of the company, may have reached a settlement with JC Flowers Asset Reconstruction Company for ₹1,500 crore.
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Why It Matters: The settlement was reportedly believed to involve the return of a 26% stake in Dish TV, held by JC Flowers ARC, to the Goel family. This stake had been acquired by Yes Bank following a default. The settlement implies that Yes Bank, which transferred its bad loan portfolio to JC Flowers ARC, might return the Dish TV India shares to the promoters.
The Goel family, with nearly 6% ownership, has time until March next year to fulfil the settlement amount, which is yet to be officially confirmed by JC Flowers ARC or the Goel family.
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The decline in pay TV (cable and satellite) subscriptions from over 160 million homes to about 100 million over the past four years has hit the revenue model of direct-to-home companies. In the fiscal year 2023, Tata Play incurred a loss of ₹105 crore with revenues amounting to ₹4,530 crore.
Subhash Chandra Goel, the chairman of the Essel group, had previously committed to repaying all loans obtained from banks.
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