Deccan Chronicle Board approves resolution on debt rejig

"The board of directors of the company at its meeting held on September 7, 2012, has passed a resolution to restructure the existing debt of company by an application to the CDR Cell under the CDR mechanism as envisaged under the Reserve Bank of India guidelines," Deccan Chronicle Holdings said in a filing to the BSE.

Meanwhile, the government on Tuesday said that Canara Bank was conducting forensic audit of the accounts of troubled Deccan Chronicle Holdings Ltd (DCH), which runs a media group and owns an IPL cricket team. According to the financial services secretary DK Mittal, the total exposure of banks to Deccan Chronicle Holdings stands at around Rs 5,000 crore of which exposure of public sector banks alone is around Rs 3,800 crore.

Deccan Chronicle Holdings, the owner of IPL franchisee Deccan Chargers, has not been able to pay the salaries to the players forcing the BCCI to look out for a prospective buyer. Shares of Deccan Chronicle Holdings on Tuesday closed at Rs 12.25 on the BSE, down 7.62% from its previous close.