Some of the lenders of debt ridden Deccan Chargers Holding (DCHL) are not keen on a debt recast of the company owing to lack of clarity over the approach and pending submission of a forensic audit report.

The decision of the select group of lenders comes even as there is a board resolution passed by DCHL for going to the Corporate Debt Restructuring cell to recast its Rs 5,000 crore debt.

Private sector banks like Axis Bank and ICICI Bank are are not so keen for a debt rejig as differences persist whether it will be done at the holding entity level of DCHL or on the subsidiary level, banking sources said.

Some of the bankers are also awaiting the forensic audit report presently conducted by Canara Bank into the accounts of the company, they added, pointing out to one more area of reservations.

“Some of the private sector lenders like Axis Bank and ICICI Bank are not very keen for referring DCHL case to corporate debt restructuring (CDR) cell,” the source said.

DCHL, which has a total debt of around Rs 5,000 crore as per the Finance Services Secretary D K Mittal, has recently passed a resolution for debt recast.

Debt recast, if approved, will provide the company the much-needed respite by reducing the interest rate and rescheduling payment among others.

DCHL, which runs newpapers like Deccan Chronicle, and Financial Chronicle, has also involved in businesses like sports, retail chain among others.

The share price of Deccan Chronicle Holdings was at Rs 9.85, down by 4.92 percent on Tuesday on the BSE and had lost around 72 percent from the beginning of this year.

(This article was published on September 19, 2012)
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