Zee Media in race to buy FM radio broadcaster RBNL

Zee Media Corporation Limited (ZMCL) has got board approval to bid for Reliance Broadcast Network Limited (RBNL), a company that has been put under the corporate insolvency process by the National Company Law Tribunal (NCLT).
"The Board of Directors of the Company, vide Resolution passed by circulation on May 5, 2023, have granted the approval to the Company to submit Expression of Interest (‘EOI') with Corporate Insolvency Resolution Professional (‘CIRP’) of Reliance Broadcast Network Limited (‘RBNL’) in relation to the "Invitation for Expression of Interest for Submission of Resolution Plan for Reliance Broadcast Network Limited" issued by CIRP appointed in terms of the extant provisions for Corporate Insolvency Resolution Process of RBNL," Zee Media said in a regulatory filing.

Resolution Professional Rohit Mehra, on behalf of RBNL, has issued an ad seeking expressions of interest from interested entities. The last date for the receipt of the expression of interest is May 14.

The date of issue of the provisional list of prospective resolution applicants is May 24. The last date for the submission of objections to the provisional list is May 29.

RBNL is in the business of FM radio broadcasting. It operates radio stations under the Big FM brand in 58 Indian cities.

As per the audited financials, the company recorded revenues of Rs 174 crore FY22-23. It has 553 employees, including 441 permanent employees.

On February 24, the NCLT admitted RBNL under the Corporate Insolvency Resolution Process (CIRP). The Mumbai bench of the NCLT had also appointed Rohit Ramesh Mehra as an insolvency resolution professional.

The NCLT order came on a petition filed by IDBI Trusteeship Services Ltd, which had approached the tribunal after the company allegedly failed to repay its dues of over Rs 174 crore.

"We are of the considered view that since the registered office of the corporate debtor (Reliance Broadcast) is in Mumbai, this tribunal has territorial jurisdiction over the present subject matter by virtue of Section 60(1) of the Code," observed the bench led by judicial member Kuldip Kumar Kareer and a technical member Anuradha Sanjay Bhatia in its order of February 24.

In 2018, Zee Media called off its deal with RBNL for the purchase of the latter's FM radio business for an enterprise valuation of Rs 1592 crore due to a delay in getting regulatory approvals.

In November 2016, the Essel Group-promoted news network signed a definitive agreement with RBNL to acquire a 49% stake in RBNL's FM radio business, with an option to acquire the balance (51% stake) after the three-year lock-in period.

Zee Entertainment Enterprises Limited (ZEEL) bought the TV broadcasting business of RBNL for a price consideration of Rs 298.4 crore.