15 AUG, 2012, 05.55AM IST, TNN
HYDERABAD: Troubled Deccan Chronicle Holdings(DCHL) has outstanding dues of well over Rs 3,270 crore that it owes to nearly 28 banks, financial institutions and non-banking financial institutions, according to details that emerged at a joint meeting ofDCHL lenders held in Mumbai on August 8.
These outstanding dues are understood to be by way of term loans, commercial papers and non-convertible debentures ranging from Rs 490 crore to Rs 10 crore. The meeting, which was chaired by Axis Bankpresident Sidharth Rath, is learnt to have been attended by representatives of IDFC, ICICI Bank, LIC,Yes Bank, Central Bank of India, Tata Capital, HDFC Bank, IFCI and Ratnakar Bank.
According to sources, DCHL lenders are mulling the possibility of forming a five-member committee of senior lenders, based on outstanding dues, to represent the interest of lenders and negotiate the recovery of their dues with the DCHL promoters. The lenders are also planning to hold a meeting with DCHL promoters and Religare representatives in a bid to pressurize them to share updates on the sale of assets of DCHL and Deccan Chargers.
According to sources, the lenders discussed various alternatives by which they could recover their outstanding dues from the DCHL promoters.
These include unlocking the value of Deccan Chargers and DCHL brands and selling off their assets before there is a further deterioration in their value, private placement of pledged shares, approaching the ministry of finance or Company Law Board for a change in management of DCHL, and actions for change of management of DCHL through the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI).
The lenders are also learnt to be exploring the possibility of sharing details of collaterals available with them and taking ajoint decision for sale of the collateral in addition to asking DCHL promoters to sell their unencumbered assets/collaterals on behalf of banks and then utilize the sales proceeds to recover dues on a pre-agreed sharing ratio basis.
From the discussions held at the meeting, it is also learnt that while some banks and DCHL promoters have already approached various media groups with offers to purchase the assets of DCHL, a prompt decision for acquisition was unlikely as these media groups were interested in unencumbered assets and may get DCHL assets at a much lesser value with the passage of time.
The company's scrip, meanwhile, continued its downward journey, hitting yet another lifetime low of Rs 10.55 a share on the Bombay Stock Exchange on Tuesday.
While DCHL promoters owe ICICI Bank Rs 490 crore, they have dues of Rs 400 crore with Axis Bank, Rs 330 crore with Canara Bank, Rs 200 crore with Andhra Bank,Rs 175 crore with Yes Bank, Rs 170 crore with Future Capital Holdings (now the loan has been acquired by Kishore Biyani) and Rs 145 crore due to IDFC.
These outstanding dues are understood to be by way of term loans, commercial papers and non-convertible debentures ranging from Rs 490 crore to Rs 10 crore. The meeting, which was chaired by Axis Bankpresident Sidharth Rath, is learnt to have been attended by representatives of IDFC, ICICI Bank, LIC,Yes Bank, Central Bank of India, Tata Capital, HDFC Bank, IFCI and Ratnakar Bank.
According to sources, DCHL lenders are mulling the possibility of forming a five-member committee of senior lenders, based on outstanding dues, to represent the interest of lenders and negotiate the recovery of their dues with the DCHL promoters. The lenders are also planning to hold a meeting with DCHL promoters and Religare representatives in a bid to pressurize them to share updates on the sale of assets of DCHL and Deccan Chargers.
According to sources, the lenders discussed various alternatives by which they could recover their outstanding dues from the DCHL promoters.
These include unlocking the value of Deccan Chargers and DCHL brands and selling off their assets before there is a further deterioration in their value, private placement of pledged shares, approaching the ministry of finance or Company Law Board for a change in management of DCHL, and actions for change of management of DCHL through the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI).
The lenders are also learnt to be exploring the possibility of sharing details of collaterals available with them and taking ajoint decision for sale of the collateral in addition to asking DCHL promoters to sell their unencumbered assets/collaterals on behalf of banks and then utilize the sales proceeds to recover dues on a pre-agreed sharing ratio basis.
From the discussions held at the meeting, it is also learnt that while some banks and DCHL promoters have already approached various media groups with offers to purchase the assets of DCHL, a prompt decision for acquisition was unlikely as these media groups were interested in unencumbered assets and may get DCHL assets at a much lesser value with the passage of time.
The company's scrip, meanwhile, continued its downward journey, hitting yet another lifetime low of Rs 10.55 a share on the Bombay Stock Exchange on Tuesday.
While DCHL promoters owe ICICI Bank Rs 490 crore, they have dues of Rs 400 crore with Axis Bank, Rs 330 crore with Canara Bank, Rs 200 crore with Andhra Bank,Rs 175 crore with Yes Bank, Rs 170 crore with Future Capital Holdings (now the loan has been acquired by Kishore Biyani) and Rs 145 crore due to IDFC.
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Only bottom feeders of the world play and care about cricket. This is the reason no one outside of India will invest a Dollar in this game. It is basically a sport of the slum dwellers.
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