Shares of Deccan Chronicle Holdings declined 1.4 percent after Care Ratings downgraded the company’s short-term borrowings after it defaulted on short-term non convertible debentures.
“As per the company’s submission, it had outstanding cash balance/ FD amounted to Rs 372 crore as on December 31, 2011 and gross cash accruals for the last quarter (1st January to 31 st March 2012) of FY12 amounted to Rs 20 crore. Despite aforementioned liquidity, the company has defaulted on its debt obligations. The company has not offered any explanation regarding the same,” Care Ratings said in a press release dated 2 July.
“We have with Pramerica Mutual Fund a CP (commercial paper) that got delayed because there was a technical mismatch on the dates of 26/27 of June. Apart from this, there is nothing else due. All other instruments are due only in late October/ November,” PK Iyer, vice-chariman, Deccan Chronicle Holdings, was quoted as saying in a report in the Economic Times.