Hyderabad: Insolvency process has begun at Deccan Chronicle Holdings Limited (DCHL) with K K Rao, IRP (Interim Resolution Professional), taking over the management of the media house that publishes Deccan Chronicle, Andhra Bhoomi, a Telugu daily, and a host of other publications.
K K Rao, IRP, has taken over the management of DCHL, it added. The Hyderabad Bench of National Company Law Tribunal (NCLT) appointed K K Rao as IRP on July 19 this year to solve long-pending debt crisis in Deccan Chronicle Holdings Limited following a petition filed Canara Bank.
The public sector bank is one of over dozen banks and financial institutions that offered loans to DCHL, but the media house defaulted on repayments. It is said that DCHL has an outstanding loan amount of Rs 700 with Canara Bank alone while the total debt pile on its books is estimated to be upwards of Rs 4,000 crore.
NCLT imposed 180-day moratorium on the loans obtained by DCHL. “Considering the nature of the industry, the importance attached to media industry, the Interim Resolution Professional is also advised to be very cautious in all his actions and he should also ensure that existing business should be continued as a going concern and should not suffer in any manner,” the tribunal mentioned in its order.
It directed IRP to constitute a committee of creditors after “collation of all claims received against the corporate debtor (DCHL)”. NCLT further said: “The first meeting of the committee of debtors shall be held within 7 days of the constitution of the committee and their decision has to be communicated to the Tribunal”.