IOB plans to attach Deccan Chronicle properties

Indian Overseas Bank (IOB) has said that it has started taking steps to attach properties of Deccan Chronicle. The Bank, which has an exposure of around Rs 75 crore, had already issued a notice under SARFAESI Act to redeem part of its lending to the company.

The Bank also said that it is planning to sell accounts, which have fallen under the NPA category, valuing to the tune of Rs 1,836 crore.

 

A senior official from the Bank has said that “we have already issued the notice and  approached the Chief Metropolitan Magistrate Court in Andhra Pradesh for seeking Police protection to take possession of the assets”.

 

An email sent to the Deccan Chronicle management for a comment for the story did not elicit response.

 

Meanwhile, the Bank official said that it has decided to goahead and attach a property in Hyderabad, which belongs to one of the Promoters. The official said the Bank gave money against securities (two properties including one in Hyderabad and other in Delhi). Deccan Chronicle Holdings Limited (DCHL) is the publisher of one of leading English Newspaper in South India – ‘Deccan Chronicle’.

 

It was reported that the company got exposure to the tune of Rs 4,300 crore, which was taken as loans from 28 lenders.

 

The lenders include, ICICI Bank has the largest exposure at Rs 490 crore, followed by Axis Bank at Rs 400 crore, Canara Bank at Rs 360 crore and others.

 

Andhra Bank, which had an exposure of Rs 200 crore, earlier seized the company's properties under the The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

 

One of the lenders, IDBI Bank even tried to auction the trademarks, including Deccan Chronicle, Asian Age, Andhra Bhoomi and Financial Chronicle. However the auction has failed, since there were no takers.

 

The Hyderabad-based media house is also under the Central Bureau of Investigation (CBI's) scanner and had applied to the Board of Industrial and Financial Reconstruction (BIFR) in September last year, seeking protection from lenders.

 

Meanwhile, IOB also said that it is planning to sell 77 accounts, valuing around Rs 1,836 crore. “Securities of these accounts are already ready for sale, we are looking for proper pricing,” said the IOB management.