Dish TV India Limited (NSEI:DISHTV) has called a shareholders meeting on June 9 to appoint new directors as requested by its lenders. The lenders, including Aditya Birla Capital Limited (NSEI:ABCAPITAL), J.C. Flowers & Co. LLC, IndusInd Bank Limited (NSEI:INDUSINDBK), and Phoenix ARC Private Limited, are planning to sell the company after a new board is appointed.

The lenders of Essel group acquired a majority stake in the company after invoking the pledge of the promoter, the Subhash Chandra family, which defaulted on its loans. The EGM has been called by the lenders to appoint three of their nominees while seeking removal of the current two directors who are affiliated with the erstwhile management, according to a notice sent to the stock exchanges on May 15, 2023. “Once the board of directors is reconstituted, the first priority will be to sell the asset to the highest bidder.

We have already informed the suitors,” said a banking source, asking not to be quoted. The founders of the company currently own 4% in it. The buyers are waiting for the outcome of the litigation between the firm and the Ministry of Information and Broadcasting, which directed the company to pay INR 56,522.8 million towards license fee since the grant of respective DTH licenses up to financial year 2021-22 (including interest till March 2023).

In a communication to the company, the Ministry has said the amount was subject to verification and audit and the outcome of various court cases pending before various courts including the Supreme Court of India. The company has disputed the demand.