India’s Dish TV pay-TV broadcaster is in the middle of acquiring rival broadcaster Videotron d2h. However, various businesses in the Videocon Group are cash-strapped and subject to insolvency proceedings.
The merged businesses would have some 29 million subscribers.
Dish TV has already notified India’s various regulatory bodies and the Bombay Stock Exchange that the transaction is delayed. The merger scheme has already been approved by India’s Ministry of Information & Broadcasting.
According to local reports the State Bank of India is starting insolvency proceedings against 12 Videocon-related businesses.
Dish is asking advisors to research the impact of the insolvency and what the consequences could be in terms of its obligations once the merger wraps. They must report their advice within 60 days. – Advanced Television