Who wrote this article?

Deepak Shenoy, Capitalmind's research team.

Deccan Chronicle MD Resigns, Stock Down 18%

29 Jul 2012Deepak Shenoy1 min read

Quick Facts

What is "Deccan Chronicle MD Resigns, Stock Down 18%" about?
What category is this article in?: General
Who wrote this article?: Deepak Shenoy, Capitalmind's research team.
When was this article published?: Published 29 July 2012.
How long does this article take to read?: 1 min read
What topics does this article cover?: DCHL, Defaults

The Managing Director of Deccan Chronicle Holdings Limited (DCHL) has resigned and the stock is down 18.8% on Friday, on very heavy volume. DCHL, as readers will remember, defaulted on certain debt obligations in June. I was the first to break that story on July 4th (HT: Dheeraj Singh) - The Owner of Deccan Chargers Defaults.

They also had two commercial paper (CP) issues due on 10th and 15th July and while I don’t know what’s happened, the company seems to have defaulted on those as well. And it hasn’t paid salaries to the players in the IPL team they own (Deccan Chargers).

The stock, which showed some resilience for a few days after the default (and it couldn’t be shorted, sadly) has now tanked to around half it’s value in the beginning of the month.

What can one say - avoid at all costs.

Who are the banks that they owe money to? And how much?