September 2, 2012
The 74 – year old Publishing Company had been in losses and has been defaulting loans. They are looking for strategic investors in order to come out of this crisis although the Founders of DC will still own the major stake and manage the company.
September 2, 2012
The 74 – year old Publishing Company had been in losses and has been defaulting loans. They are looking for strategic investors in order to come out of this crisis although the Founders of DC will still own the major stake and manage the company.
The problem majorly happened because of DC making Short Term borrowings instead of Long Term borrowings. It was also because of their aggressive expansions into markets like Chennai and Bangalore.
There has been no fraud or siphoning off of money at Deccan Chronicle Holdings, a company which is in the middle of a deep financial crisis, its chairman Tikkavarapu Venkattram Reddy said.
Flawed strategies, he said, are responsible for the troubles at the 74-year-old publishing house whose titles include Deccan Chronicle, Financial Chronicle and Telugu daily Andhra Bhoomi.
DC is talking to friendly investors to infuse money into the DC Holdings. DC is also selling the IPL Team "Deccan Chargers" which is in the stage of extensive negotiations. This will clear all the immediate debts. The Newspaper business is not planned to be sold or closed. The Company is ideally in need of 400-500 Crores to settle all their backlogs and get the business back to form.
Reddy is confident of bringing in a strategic investor soon to infuse money to overcome the difficulty, which has resulted in the company defaulting on loans and caused suspicions about financial wrongdoing. The founders will continue to own a majority stake and manage the company, he said in an exclusive interview
Courtesy: ET
