Deccan Chronicle Holdings said its networth far exceeds its current outstanding and rejected reports that its debts ran to the tune of thousands of crore.
“The net worth of DCHL far exceeds its current outstanding. The loan outstanding and the overdue sums relate to payments that were due only in the last couple of months.
“Deccan Chronicle’s value as a 75-year-old leading newspaper, the value of its fixed assets comprising land and buildings as well as plant and machinery at multiple locations, and the value of the Deccan Chargers IPL team far exceed the company’s debt,” T Venkattram Reddy, Chairman of DCHL, which owns Deccan Chronicle and Asian Age dailies, said.
His statement referred to news reports about the financials of DCHL and default in dues under loan agreements in the last few days.
DCHL would like to clarify that the real issue is a liquidity crisis that has arisen due to significant reduction in ad spend by domestic and multinational companies in India. The Indian economy has been significantly affected due to the global meltdown and the European crisis, Reddy said.
The debt that the company has incurred is in usual course of business, and the amount stated in a section of media, that it is to the tune of thousands of crores, is false, he said. IFCI which has filed a case before the debt recovery tribunal at Delhi filed another petition before the Andhra Pradesh High Court seeking liquidation of the company for delay in payment of Rs 25 crore, the statement said.
“DCHL is grateful and fully committed to its lenders, who have supported it in all its endeavours. It is actively engaging with them to find a solution to the current liquidity issue,” Reddy added.