Resolution process begins to revive UNI

In a significant development in the revival process of United News of India (UNI) under the Insolvency and Bankruptcy Code (IBC), the Resolution Professional appointed by the National Company Law Tribunal (NCLT) has invited Expression of Interest (EOI) from potential investors.

It must be mentioned that in May this year, the NCLT initiated Corporate Insolvency Resolution Process (CIRP) of the 62-year-old company, one of the oldest and most credible news agencies in the country, and appointed Pooja Bahry, a veteran in the insolvency matters, as the Interim Resolution Professional (IRP).

UNI has been going through financial distress for over a decade and the Resolution Process aims to turn its fortunes for the better.

Founded in 1961, UNI is a Multilingual Agency that provides News in 3 languages – English, Hindi and Urdu – along with Photos to over 460 subscribers, which include Media organisations, Government Departments and political parties, across the country.

As required under the IBC, Bahry issued a public notice on Saturday (Aug 5), inviting Expression of Interest from the “prospective resolution applicants, who fulfil such criteria as may be laid down by him (her) with the approval of Committee of Creditors, having regard to the complexity and scale of operations of the business of the Corporate Debtor and such other conditions as may be specified by the Board”.

As per the notice, available on UNI English and UNIVarta websites and published in various Newspapers across the country, the window for receipt of applications is open till August 31, 2023.

It says Resolution applicants can approach the company’s Resolution Professional with Resolution Plans if they (singly, jointly or in consortium) have “the necessary expertise in running an industry/business/turnaround of stressed assets etc”.

An application can be made by Private/Public Ltd Company, LLP, Body Corporate, PSUs, or Individual Investor, whether incorporated in India or outside India, with a minimum net worth of Rs 350 crore or having an annual turnover of Rs 700 crore.

A Resolution Applicant can also be a Financial Institution (FI)/Fund/Private Equity (PE) Investor/any other similar entity with minimum Assets Under Management (AUM) or Funds Deployed or Committed Funds available for investment of Rs 500 crore as on March 31, 2023.

Other criteria and conditions are also enlisted in the detailed notice.

Speaking to e4m, Bahry said, “We are genuinely hopeful that the CIRP process will be fruitfully completed and the company would again become a successful organisation and an appropriate, viable and feasible Resolution Plan will be received for UNI, which has an astounding brand value. It is a golden opportunity for prospective Resolution Applicants who genuinely have the capability to Resolve and Revive this  company, which is still a very big and established brand with a wide network in the country.”