Deccan Chronicle Holdings Ltd today said it has appointed a committee comprising three directors of the company to hold discussions with Srei Infrastructure Finance for conversion of part of its outstanding loan into equity.
According to a filing with the BSE, Deccan Chronicle Holdings Ltd stated that the Board of Directors of the company at its meeting held yesterday also said the board committee would look into the issue of finalising a joint auditor for the company.
DCHL did not indicate the quantum of loan it availed from Srei and the equity allocation to the lender.
Srei Infrastructure Finance Chairman and Managing Director Hemant Kanoria had earlier reportedly said they had initiated legal proceedings to recover its Rs 220 crore short-term loan from DCHL.
"The Board of Directors have also taken note of the conversion notice received from one of its lender viz. SREI Infrastructure Finance Ltd (SREI) for conversion of part of its outstanding loan into equity in accordance with the provisions of the loan agreement and applicable provisions of the Companies Act, 1956," the filing said.
The Board of Directors have constituted and authorised the board committee comprising of three directors of the company to enter discussions with SREI in respect of the above and to do all necessary acts, deeds and things as may be required or deemed appropriate for the above purpose, subject to necessary approvals, it added.
As on September 30, promoters of DCHL have 32.66 per cent, while FIIs, DIIs and others hold 0.07, 8.18 and 59.09 per cent stake, respectively, in the company.
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 (including some banks) of the city-based company filed complaints in various courts and forums for alleged default of payments.
The Board also considered and accepted the recommendation made by the Audit Committee for appointment of joint auditors for the Company.
The committee will search for an audit firm out of the top-six firms in the country to act as joint auditors of the company, it further said.