Oct 17, 2012, 01.18 PM | Source: Moneycontrol.com
Shares of Deccan Chronicle Holdings (DCHL) touched a new 52-week low of Rs 8.33 on Wednesday, losing more than 13 percent since Monday this week.
Recently the Hyderabad-based publisher of three English newspapers and one vernacular daily defaulted on its repayment of Rs 5000 crore loans, taken from a consortium of about 11 banks.
Yesterday in a press conference, the country's third largest private sector lender Axis Bank said it has made provisions for its credit exposure to debt ridden Deccan Chronicle, which slipped into non-performing asset category in the July-September quarter.
There are also some concerns over its IPL franchise - Deccan Chargers, which has received a last minute lifeline from its Bombay High Court-approved arbitrator last week. The arbitrator has extended the deadline for DCHL to furnish bank guarantees of Rs 100 crore.
These developments came on the back of the DCHL board approving an MOU with a Mumbai-based realty player Kamala Landmarc for the sale of the franchise.
The fear of the termination of the IPL franchise was saved by Mona Bhide, a counsel appearing for DCHL, who made an interim application under Section 17 of the Arbitration and Conciliation Act for an extension of the deadline for furnishing of the bank guarantees. This extension was provided by CK Thakkar, a retired Supreme Court judge and the Bombay High Court-appointed arbitrator in the case who is the adjudicator in the case.
At 10:52 hours IST, Deccan Chronicle Holdings was trading at Rs 8.38, down 3.79%. Market capitalisation of the company currently stands at Rs 175.12 crore.