Read the full text of Essel Group chairman Subhash Chandra's open letter

Zee founder and Essel Group chairman Subhash Chandra
Essel Group founder and chairman Subhash Chandra, in an open letter, alleged that certain negative forces were trying to hamper the promoters’ stake sale in entertainment network Zee Entertainment Enterprises (ZEEL).

Chandra said that he would be able to repay the entire dues of the Essel Group only after he sells his stake in ZEEL.

Open Letter from the Desk of Subhash Chandra, Chairman, ZEE & Essel Group

Dear Friends,

At a very early stage of my life, I have learnt the most important lesson from my grandfather, Shri Jagannath Goenka, which taught me that a direct dialogue with the creditors should be maintained, should you find it difficult to repay any sort of loans, and this message is my earnest effort in doing so.

to their expectations, despite the best of my intentions.

I am extremely certain that there is no promoter in India Inc., who has dared to sell the jewel of his crown, to pay off the liabilities. While the process is still ongoing, there are some forces which are not willing to see us succeed.

That said, I am not indicating that there are no mistakes done from my end, and as always, I am willing to face the consequences of the same. I assure you, that I am not running away from the core issue and will do my best to repay each and every person. The best time for the same, however, is difficult to be mentioned at this stage. I would also like to state through this message, the key points which have gone wrong:

me and Jawahar both, a fortune.

our family business separation was implemented, as the eldest member of the family, I had taken the entire burden of the debts. I believe, it was my mistake to have told myself that “Subhash you can earn and repay the creditors”. Post which, most of my bets on the new businesses have not worked, which led to the increased debt, due to the added interest levels.

, diminishing our ability to service our borrowings.

5. From May / June 2018 onwards a negative force which was acting against our grip as promoters became strongly active. This was followed by some anonymous letters being sent to all Bankers, NBFCs, Mutual Funds, Shareholders, etc.

we have reported some really good results from the operating Companies, the share prices were intentionally hammered by these negative forces, driving away the investors.

the current situation, I must also mention what steps were taken from our end:

  • We wrote a number of complaints to the Department of Police, Home Minister of Maharashtra, SEBI and other concerned authorities, right since November 2018, but all the efforts did not result in any action.
  • Till December, we continued to pay the due interest and principle, to all lenders.
  • , I have just returned back from London, last night itself, after a series of positive meetings with potential suitors.

.

I must also mention that there is no systematic protection against the insidious attack on us by the mentioned negative forces, but we will continue to seek the support of the system in order to thoroughly investigate the matter.

About the Operating Companies:

  • I would like to reiterate that ALL the Companies are performing exceptionally well and there is no problem whatsoever.

Having said the above, I still believe, strongly feel and would like to urge the lenders, not to react in an anarchical manner and to maintain patience, till the process of ZEE Entertainment’s stake sale

is completed. Post the sale process, we will be positively able to repay the entire dues, but if the lenders react in a panic situation, it will only hurt them and us.

I would again like to reiterate that I have no intention whatsoever, to keep a single rupee, till all the dues to the lenders are paid.

Yours truly,

Subhash Chandra

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