Deccan Chronicle Holdings, which has been in the eye of a storm in the recent past, has lashed out at its detractors and stated that its networth far exceeds its current outstanding. PTI quoted T Venkattram Reddy, Chairman of Deccan Holdings as saying that “The net worth of DCHL far exceeds its current outstanding. The loan outstanding and the overdue sums relate to payments that were due only in the last couple of months”.
Reddy was further quoted as saying “Deccan Chronicle’s value as a 75-year-old leading newspaper, the value of its fixed assets comprising land and buildings as well as plant and machinery at multiple locations, and the value of the Deccan Chargers IPL team far exceed the company’s debt.”
Reddy came clean that the real problem faced by Deccan Holdings was a liquidity crisis that has arisen due to significant reduction in ad spend by domestic and multinational companies in India. He added that the Indian economy has been significantly affected due to the global meltdown and the European crisis. He also clarified that the debt that the Deccan Chronicle Holdings had incurred was in usual course of business. The amount stated in a section of media, that it is to the tune of thousands of crores, is false, he emphasized.
The problem was compounded because IFCI filed a petition before the debt recovery tribunal at Delhi and also filed a winding up petition before the Andhra Pradesh High Court seeking liquidation of the DCHL for delay in payment of Rs 25 crore.
Reddy struck a conciliatory note when he said that “DCHL is grateful and fully committed to its lenders, who have supported it in all its endeavours. It is actively engaging with them to find a solution to the current liquidity issue.”
Deccan Chronicle Holdings’ shareholders are a worried lot given the steep fall in its stock price. Lets hope for their sake that this crises blows over.