New Delhi: The National Company Law Appellate Tribunal (NCLAT) has upheld the Mumbai Bench of the National Company Law Tribunal’s (NCLT) May 6, 2024, order approving Sapphire Media’s resolution plan for Reliance Broadcast Network Limited (RBNL). RBNL operates the FM radio business under the brand name Big 92.7 FM.
The NCLT order was challenged by two unsuccessful resolution applicants, Abhijit Realtors & Infraventure and Creative Channel Advertising & Marketing, through a batch of five appeals. These appeals alleged irregularities in the Corporate Insolvency Resolution Process (CIRP) adopted by the resolution professional (RP) of RBNL.
Key Highlights of the NCLAT Ruling:
The NCLAT confirmed that the challenge mechanism and negotiations conducted by the RP complied with CIRP Regulations and the Process Note.
“We have already found that the challenge mechanism as well as negotiation conducted by the resolution professional is in accordance with the CIRP Regulations and Process Note,” the tribunal stated.
The tribunal found no irregularities in evaluating Sapphire Media’s eligibility and rejected claims of ineligibility raised by the appellants.
“…we do not find any ground to interfere in the order dated May 6, 2024, impugned in the above Appeals. In result, all the appeals are dismissed,” it concluded.
The CIRP against RBNL was initiated on February 24, 2023, following an application by financial creditor IDBI Trusteeship Services. The RP received six resolution plans, including bids from Sapphire Media (₹104.28 crore), Abhijit Realtors & Infraventure (₹80.20 crore), Creative Channel Advertising & Marketing (₹100 crore), and Entertainment Network (India) Limited (₹37.17 crore).
A base price of ₹240 crore was set for the challenge process, with Sapphire Media emerging as the highest bidder at ₹251 crore in the third round. After negotiations, Sapphire Media revised its bid to ₹261 crore, surpassing competing bids from the Consortium of Abhijit Realtors & Infraventure and ENIL (₹248 crore) and Creative Channel Advertising & Marketing (₹240 crore).
Sapphire Media’s bid received an overwhelming 88.97% approval from the Committee of Creditors (CoC) before being forwarded to and subsequently approved by the NCLT.
Allegations regarding Sapphire Media’s eligibility and the challenge process were dismissed by NCLAT, affirming the transparency and fairness of the CIRP process.
The resolution marks a significant milestone in the insolvency process of Reliance Broadcast Network, ensuring the revival of its operations under Sapphire Media’s stewardship.
