In an effort to reduce debt, Cash trapped publisher Deccan Chronicle Holdings Ltd (DCHL) has invited bids to sell its Deccan Chargers cricket team, which plays in the Indian Premier League (IPL).
Company made clear a bidding schedule today in which Interested parties can seek clarifications on the bidding until Sep 10, and the bids must be submitted in person. company will announce the name of the highest bidder on Sep 13.
The winning bidder will acquire the right to own and operate the Hyderabad-based Deccan Chargers on an “as is where is” basis.
Company clarified that 95% of the proceeds of the sale will be utilised to repay its lenders. The remaining 5% will be paid to the Board of Control for Cricket in India (BCCI).
In a body blow development Bombay High Court on Wednesday had restrained Deccan Chronicle from selling, leasing, or creating any third-party rights on its mortgaged properties in Mumbai, after the company defaulted on repayment of 1.01 bln rupees to Tata Capital Ltd. TIn addition to that he court also attached six bank accounts of DCHL.
DCHL is under severe stress of debt burden and its market cap has been wiped out by more than 80% in last one year. Investors and lenders are worried about the earning and functioning of company after KARVY lodged a complaint against promoter of DCHL for forgery.
Deccan Chronicle shares closed at Rs. 12.25 down by 4.7% on the NSE.