Deccan Chronicle Holdings (DCHL) has been suspended from equity trading from January 23, as the company failed to respond to the National Stock Exchange’s (NSE) notice for non-compliance of certain provisions of the listing agreement.
In a communique to its members, the NSE said, ?Trading in the equity shares of Deccan Chronicle Holdings will be suspended w.e.f. January 23, 2013 (i.e., closing hours of trading on January 22, 2013) as the company has failed to respond satisfactorily to the notice of the exchange for non-compliance with the provisions of listing agreement.”
?Non-compliance with provisions of listing agreement includes non submission of shareholding pattern under Clause 35, non-submission of corporate governance report under Clause 49, non submission of financial results under Clause 41 and non-submission of reconciliation of share capital audit report for the quarter ended September 30, 2012,” the NSE statement added.
This setback comes at a time when the troubled company has already been restrained from disposing of its both movable and immovable assets by the Debt Recovery Tribunal, Hyderabad. The company has learnt to have mortgaged assets with multiple banks, leading to a vicious circle in multiple lending process. Following the liquidity crisis at DCHL, several bankers have initiated proceedings against it for recovery, including winding-up petitions in the High Court.
DCHL has taken loans from many public sector banks of R1,090 crore and security worth of value R1,469.04 crore as on September 30. The total debt in DCHL is over R5,000 crore, claim finance ministry officials.
