Biyanis to take over Future Cap's loan to Deccan Chronicle

The Biyanis have saved the deal between Future Capital and Warburg Pincus. They have decided to take the Rs 170 crore debt exposures to Deccan Chronicle away from Future Capital, reports CNBC-TV18's Sajeet Manghat.

There was a board meeting of Future Capital Holdings where the board reviewed the exposure of Future Capital Holdings to Deccan Chronicle Group. Now Deccan Chronicle Group has been going through a rough patch and there has been a case of default as well in one case. There has been also a case of basically misrepresentation of documents and that's why the Future Capital Board met and reviewed that entire exposure.

Future Capital is undergoing a transition itself where Warburg Pincus is going to hold a majority stake in Future Capital and the Biyani's are going to exit Future Capital there.

This particular transaction is likely to have been of a threatening nature for the entire deal to go through because even though the FIPB permissions might have come in, the other requisite things were supposed to happen over a period of time including an open offer. That’s when Biyani has stepped in to take over the entire Rs 170 crore exposure, which Future Capital Holdings had on the Deccan Chronicle group and put it into the Future Group itself.