Zee Learn reaches deal with JC Flowers ARC

Subhash Chandra’s Essel Group-owned Zee Learn Ltd on Tuesday confirmed signing a settlement agreement with JC Flowers Asset Restructuring Co. (ARC).

Zee Learn is among Essel Group companies with a total exposure of ₹6,500 crore with JC Flowers ARC, which Chandra has been trying to settle.

Mint broke this news first on Tuesday that Chandra was close to signing a definitive agreement for close to ₹1,500 crore to regain ownership of the family’s stake in Dish TV and Zee Learn as well as three properties, which includes a bungalow in central Delhi.

Mint reported that Chandra will repay the settlement amount in a phased manner by 31 March 2024. While it is not clear where Chandra will get the money to settle the debt, people familiar with the development said there are certain planned liquidity events to help repay the debt.

In a filing to the stock exchanges, Zee Learn said it signed a settlement agreement with JC Flowers ARC on 7 August 2023 to settle its obligations with respect to loans borrowed by certain trusts and entities.

The company, in an intimation, further mentioned that till the time the loans are settled in terms thereof, and legal proceedings initiated in connection therewith are either settled/withdrawn, the matters covered under the legal proceedings remain sub judice.

Zee Learn operates chain of over 1,700 pre-schools under Kidzee in over 550 cities across India and neighbouring countries, as well as a chain of K-12 schools—Mount Litera Zee School. The company also owns vocational institutes Zee Institute of Creative Arts (ZICA) and Zee Institute of Media Arts (ZIMA).

Meanwhile, Dish TV, which was run by Chandra’s brother Jawahar Goel, before Yes Bank invoked the pledged shares, will not be making any similar disclosure, as the company was not a direct signatory to any loan agreement with Yes Bank or JC Flowers, the people said.

It is important to note that Chandra had taken a loan of ₹4,210 crore from Yes Bank to purchase Videocon d2h from the Videocon Group, to merge it with Dish TV.

Mint was also the first to report on 21 July 2023 that Chandra had initiated talks with JC Flowers to buy back his family’s stake in Dish TV for close to ₹1,500 crore. However, the two disagreed on the payment deadline, with JC Flowers ARC earlier insisting on full payment by 31 January 2024.

Presently, the Essel Group and promoter family claim to have settled debt worth ₹30,000-35,000 crore.