Essel Group chairman Subhash Chandra today issued a second open letter, in which he shared the details of the debt resolution process and the steps taken to pay off the lenders. Chandra said his company has settled over 91 per cent debt to 43 lenders, and the remaining dues are in the process of being paid.
In his first open letter issued on January 25, 2019, Chandra had apologised for the "hardships faced by the lenders due to the liquidity crisis triggered by the IL&FS case".
"Chandra has managed to fulfil 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 per cent of the debt to the lenders, however, the unprecedented times led to a delay," a company statement said.
Sharing the debt resolution details, Chandra said: "We have come out of the financial stress situation by settling 91.2 per cent of total debt to 43 lenders in 110 accounts. Around 88.3 per cent amount has been paid, while the remaining 2.9 per cent is in the process of being paid."
He said the company is making all the required efforts to settle the remaining 8.8 per cent debt. "I have no regrets for parting with a substantial ownership in the business and especially in the 'jewels of the crown'. This was done to keep the family's honour," he said, adding that he aims to settle the remaining outstanding dues before the end of this fiscal year or before.
As per the debt resolution process, Essel exited from the infrastructure, financial services and print media businesses. Meanwhile, Chandra also shared his next steps in terms of setting up a venture in the video space in the digital ecosystem. "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 and machine learning) in the video space, without getting into any conflicts with ZEEL, in any manner."
Meanwhile, Vallabh Bhansali, co-founder and chairman, ENAM, said: "In nearly forty years of my friendship with Subhash ji he always made me feel proud. I must say that his achievements as a visionary businessman pales before his act of honour to sacrifice all he built for the sake of it. So also his humility to admit his errors openly. In fifty years of my business career, I can’t think of a parallel."
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