Deccan Chronicle hits new life-low as IFCI says firm insolvent

Shares of Deccan Chronicle holdings were down about 9 percent to a new life-time low of Rs 16.80 after news that Industrial Finance Corporation of India Ltd (IFCI) said in a winding up petition filed in the high court that the company is insolvent.

The financial institution said in the petition that the company has liabilities worth thousands of crores of rupees and the company’s networth has been eroded entirely, a Times of India report said on Sunday.

[caption id=“attachment_396155” align=“alignleft” width=“380”]  Reuters[/caption]

The petition was filed after the company defaulted on unsecured redeemable non-convertible debentures worth Rs 27.8 crore, the report said.

A London court had ordered the company to pay around Rs 90 crore to Tim Wright, the former chief executive of its Indian Premier League team Deccan Chargers, for breach of employment contract. The petition has cited this as one of the key liabilities of Deccan Chronicle, the report said.

More from Investing

MSMEs are breaking the traditional convention. Look who’s funding them Scale-up your startup without an investor! Here’s how

The promoters of the company had recently pledged 54 percent of their holdings with Future Capital. Deccan Chronicle is likely to have raised Rs 258 crore through this, an Economic Times report said.