Deccan Chronicle Holdings Limited informed the stock exchanges today that a meeting of the board of directors of the company to approve financial results for the quarter, slated for August 14, was adjourned due to lack of quorum.
The Chairman (T. Venkattram Reddy), and the Vice-Chairman (Vinayak Ravi Reddy) are out of station. The adjourned board meeting date and venue shall be intimated in due course, it said.
The company’s Managing Director, N. Krishnan, had resigned few weeks ago.
Earlier, the company had informed that it has decided to extend the financial year ended on March 31, 2012 for a further period of six months, ending on September 30, with the approval of the Registrar of Companies.
The company shares ended the day’s trade hitting a new low to close at Rs 10.10, down 4.72 per cent.
The company, which publishes the English daily Deccan Chronicle, has been going through a tough liquidity situation and has accumulated huge debts. Some of the lenders, such as IFCI, have approached the Andhra Pradesh High Court seeking winding up of the company and have also sought the help of the Debt Recovery Tribunal to recover their dues.
Meanwhile, the IPL Governing Council has given Deccan Chargers, the cricket team promoted by DCHL, 14 days to sort out financial issues and payment of dues. The company had enlisted the services of Religare Capital to find a suitor.
The Hindu Business Line competes with The Financial Chronicle.
Keywords: DCHL, Chairman T. Venkattram Reddy, DCHL Vice-Chairman Vinayak Ravi Reddy, Deccan Chronicle’s Managing Director, N. Krishnan, PL Governing Council, Debt Recovery Tribunal, Deccan Chronicle shares
Comments:
Is DCHL accountable for the debt the promoters have taken pledging
their own shares in the company? Can anybody other than DCHL itself
get the sale proceeds of Deccan Chronicle and Deccan Chargers if and
when they are sold? If the promoters have taken loans without
incumbering the Company, the Company cannot be made accountable for
any dispute arising from them. Those aggrieved may have to get their
dues from the personal properties of the promoters...how can the
ordinary shareholders be responsible? Therefore, it is only a
question of a few more days before the DCHL shares will bounce back.
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