Canara Bank offers one time settlement to Deccan Chronicle Holdings

Jul 15 2014, 18:34 IST
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SummaryPublic sector lender Canara Bank has offered one-time settlement to Deccan Chronicle Holdings Ltd

Public sector lender Canara Bank has offered one-time settlement to Deccan Chronicle Holdings Ltd (DCHL), when the latter approached it for restructuring of loans, a top bank official said today.

"Promoters of Deccan Chronicle approached to restructure the loans... We suggested that we may not restructure their loan, because they may have to bring a lot of funds.

"We told them we would like OTS (one time settlement). You bring money, we will settle it. After that they have not approached us," Canara Bank CMD R K Dubey told reporters on the sidelines of Financial Sector Conclave (FINSEC –2014), organised by Ficci.

He also said the mortgaged assets of DCHL cannot be sold without the prior permission of RBI.

DCHL, engaged in printing and publishing of 'Deccan Chronicle', 'Financial Chronicle', 'Andhra Bhoomi' and 'Asian Age' newspapers, is facing a rough weather after some of its lenders, including Canara Bank, filed complaints in various courts and forums for alleged default of payments.

Dubey said Canara Bank has an exposure of Rs 350 crore toward the DCHL account. The bank has already filed complaint with CBI and the investigation is yet to be concluded.

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