Some of the lenders of the debt-ridden Deccan Chronicle Holdings Ltd (DCHL) were 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 came even as there was 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 were not so keen for a debt rejig as differences persist whether it would be done at the holding entity level of DCHL or on the subsidiary level, banking sources said. Some of the bankers were 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.
DCHL, which has a total debt of about Rs 5,000 crore according to the Finance Services Secretary D K Mittal, had recently passed a resolution for debt recast. Debt recast, if approved, would provide the company the much-needed respite by reducing the interest rate and rescheduling payment among others.
DCHL, which runs newspapers like Deccan Chronicle, and Financial Chronicle, had been also involved in businesses like sports and retail chain among others.
The share price of Deccan Chronicle Holdings was at Rs 9.85, down by 4.92 per cent on Tuesday on the BSE and had lost about 72 percent from the beginning of this year.