DCHL to demerge media biz
Hyderabad: Troubled Deccan Chronicle Holdings Ltd (DCHL) is in the process of demerging its printing and publication, retail and sporting activities...
Hyderabad: Troubled Deccan Chronicle Holdings Ltd (DCHL) is in the process of demerging its printing and publication, retail and sporting activities into a separate entity called 'Land Interactive Media' registered in Delhi.A According to the information provided to the Andhra Pradesh High Court recently, the city-based media group which is reeling under pressure of creditors said it may consider listing the new demerged entity on bourses.
The court had last month directed the DCHL to conduct a meeting of the shareholders and also the creditors for the purpose of determining the proposal of scheme of demerger. The High Court in its direction, while appointing justice (Retd) P Durga Prasad as chairman for the meeting, directed the DCHL to hold the meeting from May 6-8 and either in Mumbai or Delhi.
DCHL which is engaged in printing and publishing of Deccan Chronicle, Financial Chronicle, Andhra Bhoomi and Asian Age newspapers is facing rough weather after some lenders of the company filed complaints in various courts and forums for alleged default of payments.
"Currently the applicant company (DCHL) is facing financial difficulties and is intending to address the concerns of all the stakeholders in an amicable manner which, in turn, enables to a large extent in carrying on the business in a variable manner," DCHL said in the affidavit. The DCHL in its affidavit said Land Interactive Media will have Rs 250 crore as capital though allotment of 18.74 crore equity shares. The shares are proposed to be allotted at a price of `13.34 including a premium of `12.34 per share. The shares will be held entirely by the promoters.
"To unlock the value of the assets and realise the true potential of the print business of DCHL, the print business is proposed to be demerged into a separate company to bring in distinct focus," the DCHL affidavit said.
The entire shares in the resulting company (Land Interactive Media) including the equity shares to be allotted pursuant to the scheme as consideration for demerger and on conversion of convertible debentures, will be considered for listing on the national Stock Exchange and/or Bombay Stock Exchange, DCHL added.
Meanwhile, Justice NRL Nageshwar Rao of the AP High Court on Wednesday adjourned to June 5 the applications filed by DCHL seeking to stay the various civil and criminal petitions filed against it by various banks creditors in various courts.
The application filed by DCHL is under Section 391 (6) pending its application under Section 391 for demerger of the along with Land Interactive Media Private Limited The court earlier ordered notice in the application for demerger and hence the present petition to stay all civil and criminal cases pending.