ArdorComm Media Group

Radio Mirchi and Radio Orange Compete to Acquire BIG FM Network in Insolvency Bid

Two leading radio networks, Radio Mirchi and Radio Orange, are reportedly competing in a bid to acquire BIG FM Radio network, which is currently going through an insolvency process. The bids from Radio Mirchi and Radio Orange, as well as Haryana-based Sapphire FM, are both valued at Rs 251 crore.

The lenders involved are expected to request upward revisions to the bids, and the lenders may potentially recover up to 60% of their total admitted claims, considering the cash reserves of BIG FM. BIG FM, owned by Reliance Broadcast Network Ltd, is India’s largest radio network, operating in numerous towns and villages. The insolvency proceedings began after BIG FM failed to repay a debt of Rs 175 crore, with total lender claims amounting to Rs 578 crore.

Lenders include IndusInd Bank, HSBC Asset Management, Franklin Templeton MF, and Reliance Commercial Finance. The insolvency case is related to Reliance Broadcast Network’s failure to clear a financial debt of Rs 175 crore, stemming from NCDs issued in 2015 and 2016.

IDBI Trustee Services represented L&T Investment Management Services in the case, with Reliance Capital serving as the guarantor for Reliance Broadcast Network. However, at the time of NCD redemption in 2020, the payment was not made, leading to the insolvency proceedings.

0 0 votes
Article Rating
Notify of

Inline Feedbacks
View all comments