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Deccan Chronicle shares trading to stop

Hyderabad/ Mumbai, Jan 16 () : Deccan Chronicle Holdings Ltd (DCHL) stocks will no longer be traded on stock exchanges from closing hours of 22nd January, 2013.

An announcement on NSE said that non-compliance with the provisions of listing agreement, members of the Exchange are informed that the equity shares of Deccan Chronicle Holdings Ltd will be suspended w.e.f. January 23, 2013 (i.e. closing hours of trading on January 22, 2013).

On Tuesday, the stocks closed at Rs 7.17 losing 87 percent on the bourses from its previous of Rs 55.45 recorded on 16 February, 12. Canara Bank and other banks have loaned Rs 5000 crores to the company. In October 2012, the lenders decided to do debt restructuring plans for Rs 2300 crores but did not succeed.

The Debt Recovery Tribunal on notice from Canara Bank has asked the company to deposit Rs 367 crore with it since the bank holds first charge on all the assets of the company. The forensic audit of the company by the bank showed that the assets pledged to it has been re-pledged with other creditors.

The Hyderabad-based media company lost its IPL franchise since it could not raise Rs 100 crores as fees to BCCI. Non-submission of corporate governance report, financial results and reconciliation of share capital audit report for the quarter ended September 30 have led to NSE delisting the shares of the company.

DCHL chairman and promoter T Venkataram Reddy is out of station. Defaulting on redemption of non-convertible debentures held by IFCI led to a winding up petition which blew the lid off the financial mess that the publication faces.

On news of DCHL impending suspension of its shares from trading, its stocks hit the bottom circuit filter of 5% at Rs 6.80 with no buyers. The stock opened at Rs 6.80 on NSE and has seen a combined 21,251 shares changing hands on the counter in morning deals. In NSE and BSE there  are pending sell orders for 2.28 million shares.