Shares of Deccan Chronicle Holdings (DCHL), which owns Deccan Chronicle newspaper, today hit a record low, falling about 10% amid reports of the media firm facing severe financial crisis.
After opening weak, the company's scrip further plummeted by 9.97% to a record low of Rs 16.70 on the BSE.
The stock was trading 9.43% down at Rs 16.80 at 1320 hours.
Similarly on the National Stock Exchange, DCHL was trading at Rs 16.80, down 9.43% from the previous close.
As per reports, Industrial Finance Corporation of India Ltd (IFCI) filed a petition against DCHL in the Andhra Pradesh High Court on Friday, after it said that the media company defaulted on redemption of 250 unsecured redeemable non- convertible debentures (NCDs) on June 26.
They were part of the Rs 150 crore NCD issue made by way of private placement by DCHL with Infrastructure Development Finance Company (IDFC) last year at an interest rate of 11.25% per annum for a tenure of 364 days.
In July last year, 250 of these NCDs were acquired by IFCI from IDFC.
DCHL also failed to pay up its dues of Rs 27.80 crore despite repeated requests and demands, the report said.
Contending that DCHL is unable to discharge debts of its creditors and may become insolvent, IFCI urged the High Court to order winding up of the company under the relevant sections of the Companies Act, 1956.
Also on Friday, promoters of cash-strapped DCHL pledged 54% of their stake with Future Capital Holdings.
The shares were pledged as a part of collateral encumbrance created in consideration of borrowings by Deccan Chronicle Holdings Ltd and Aviotech Private Ltd.
The DCHL scrip, which was offered at a premium of Rs 152 on a face value of Rs 10 during its initial public offer in December 2004, currently has a face value of Rs 2 after being split in January 2007.
