T Venkattram Reddy, chairman of the Hyderabad-based company, wrote to Corporate Affairs Minister Veerappa Moily, appealing that no suo moto action be taken against the company by any authority, including the Company Law Board, the Serious Fraud Investigation Office and the Registrar of Companies, Hyderabad. The letter, the details of which were accessed by NDTV, assures that the concerns about the company will be resolved at the earliest.
A debt restructuring programme is already underway, the letter notes. The Deccan Chronicle board cleared its debt restructuring plan on September 7.
According to Reddy, a private equity investor has been roped in and has committed to invest Rs 2,000 crore (approximately $370 million) into the company. It is hoping that the sale of Deccan Chargers will be completed, which could fetch funds for the debt-ridden company.
The letter claims that the financial condition of Deccan Chronicle deteriorated because of high raw material costs, a fall in advertising revenue and the weak rupee.
On Monday, the Bombay High Court directed the Board of Control for Cricket in India (BCCI) to not invite bids for sale of Deccan Chargers, after a failed attempt to auction off the cricket team.
Deccan Chronicle is the printer and publisher of English dailies Deccan Chronicle and The Asian Age, the Telugu daily Andhra Bhoomi, and the business daily Financial Chronicle.
The stock, which plunged nearly 20 per cent last week, closed below Rs 10 today from its year’s high of Rs 62.