ICICI Securities moves tribunal against Deccan Chronicle
, ET Bureau|
Updated: Sep 29, 2017, 08.27 AM IST
ICICI Securities has approached the National Company Law tribunal (NCLT) against the ailing media house Deccan Chronicle Holdings a few weeks after Canara Bank took the company to the tribunal initiating insolvency proceedings and seeking directives to interim resolution professional (IRP) to recover dues.
ICICI Securities, which originally claimed Rs 125 crore dues from Deccan Chronicle, has submitted to the Tribunal that the media house had indicated inability to repay the entire amount and offered Rs 45 crore of non-convertible debentures.
The Hyderabad-based firm, which owns the dailies Deccan Chronicle, Financial Chronicle, Asian Age and Andhra Bhoomi, offered a second charge over a corporate jet where the first charge was already given in favour of ICICI Bank.
Subsequently, Deccan Chronicle Holdings partly refunded Rs 80 crore but failed to deliver debentures worth Rs 45 crore, forcing the lender to move the Company Law Board's Chennai bench before approaching the, Tribunal at Hyderabad.
Responding to a corporate insolvency resolution petition filed earlier by lead lender Canara Bank a few weeks back, the NCLT Hyderabad bench ordered insolvency process be started and appointed an IRP, who is currently managing the affairs of Deccan Chronicle Holdings. The media house owes more than Rs 4,000 crore to various lenders including IDBI Bank, Coprporation Bank, Indian Overseas Bank, Axis Bank, Kotak Mahindra Bank, J&K Bank and LIC.
ICICI Securities sought the NCLT's directives to compel Deccan Chronicle Holdings to redeem its debentures of Rs 45 crore, along with interest dues in terms of agreement.
In the light of the corporate insolvency resolution process ordered by the tribunal on July 19, it advised ICICI Securities to approach the IRP with its claims with material documents.
Over the last five years or so, dozens of banks and financial institutions have been trying to recover loans extended to Deccan Chronicle Holdings after the publishing house plunged into financial crisis. Some lenders managed to sell assets pledged with them to recover dues, others like ICICI Bank and Srei Infrastructure Finance converted portions of loans into equity.
ICICI Securities, which originally claimed Rs 125 crore dues from Deccan Chronicle, has submitted to the Tribunal that the media house had indicated inability to repay the entire amount and offered Rs 45 crore of non-convertible debentures.
The Hyderabad-based firm, which owns the dailies Deccan Chronicle, Financial Chronicle, Asian Age and Andhra Bhoomi, offered a second charge over a corporate jet where the first charge was already given in favour of ICICI Bank.
Subsequently, Deccan Chronicle Holdings partly refunded Rs 80 crore but failed to deliver debentures worth Rs 45 crore, forcing the lender to move the Company Law Board's Chennai bench before approaching the, Tribunal at Hyderabad.
Responding to a corporate insolvency resolution petition filed earlier by lead lender Canara Bank a few weeks back, the NCLT Hyderabad bench ordered insolvency process be started and appointed an IRP, who is currently managing the affairs of Deccan Chronicle Holdings. The media house owes more than Rs 4,000 crore to various lenders including IDBI Bank, Coprporation Bank, Indian Overseas Bank, Axis Bank, Kotak Mahindra Bank, J&K Bank and LIC.
ICICI Securities sought the NCLT's directives to compel Deccan Chronicle Holdings to redeem its debentures of Rs 45 crore, along with interest dues in terms of agreement.
In the light of the corporate insolvency resolution process ordered by the tribunal on July 19, it advised ICICI Securities to approach the IRP with its claims with material documents.
Over the last five years or so, dozens of banks and financial institutions have been trying to recover loans extended to Deccan Chronicle Holdings after the publishing house plunged into financial crisis. Some lenders managed to sell assets pledged with them to recover dues, others like ICICI Bank and Srei Infrastructure Finance converted portions of loans into equity.
