Friday, January 17, 2014

Deccan Chronicle fails to furnish security to DRT

TNN Jan 16, 2014, 03.56AM IST

HYDERABAD: The debt ridden Deccan Chronicle Holdings Ltd (DCHL) has failed to furnish the required surety before the Debt Recovery Tribunal (DRT) that will prevent its mortgaged aircraft from being auctioned by its lender ICICI Bank. After failing to meet the January 9 deadline fixed by the tribunal to furnish sufficient surety, DCHL has told the tribunal that it had challenged the DRT order in the AP high court and sought a stay on further proceedings.
It can be recalled the tribunal had earlier directed DCHL to furnish sufficient security before January 9, 2014, failing which the Hawker aircraft belonging to its sister concern Flyington Freightors' Pvt Ltd will be auctioned to clear the dues pertaining to one of the loans it availed from ICICI Bank. The bank, which is now waging a legal battle to recover Rs 500 crore dues from DCHL, has also filed a separate petition seeking recovery of Rs.10 crore dues pertaining to the loan the company availed in 2007 through mortgage of the aircraft. ICICI is now seeking permission to sell the aircraft.
The tribunal, in its previous order, gave a last chance to DCHL and directed it to furnish an unencumbered security in order to save the aircraft from being sold. The tribunal also made it clear that it will appoint a receiver to effect the sale of the aircraft if DCHL fails to furnish the surety by the stipulated date. The company, however, failed to comply with this order and instead, the DCHL counsel sought more time from the tribunal. This was opposed by ICICI Bank counsel Sriharsha Reddy, who said the tribunal cannot review its order and sought permission from it to go ahead with the auction of the aircraft. The tribunal posted the matter to January 16 for hearing.

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