Debt-ridden media firm Deccan Chronicle Holdings Ltd has appointed a committee comprising three directors of the company to hold talks with Kolkata-based SREI Infrastructure Finance for converting part of its outstanding loan into equity, as per a stock market disclosure.
SREI Infra had given short-term loan of around Rs 220 crore to Deccan Chronicle and had earlier initiated legal proceedings to recover its money. Deccan Chronicle is the publisher of publications such as Deccan Chronicle and Financial Chronicle.
SREI Infra had approached the Debt Recovery Tribunal (DRT) a few months back. It is said to have security of around five properties of Deccan Chronicle in Hyderabad and Chennai mortgaged against the loan.
It is not clear how much quantum of loan is to be converted into equity. At present, the whole company is worth just Rs 78 crore on the stock market.
In the filing, Deccan Chronicle also said its board would look at finalising a joint auditor for the company.
The company is facing trouble after several complaints were filed by some lenders in various courts for alleged default of payments under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act.
Last month, DRT Hyderabad issued an injunction order stopping Deccan Chronicle from disposing of its assets that are mortgaged to public sector lender Canara Bank. The move followed Canara Bank moving the tribunal after it found that the management of Deccan Chronicle Holdings was trying to dispose the assets.
(Edited by Joby Puthuparampil Johnson)