Real estate firm agrees to buy Deccan Chargers

MUMBAI: The healing process for the financially ailing Deccan Chronicle Holdings Ltd (DCHL) has started. Arresting the slide to a possible bankruptcy, the Hyderabad-based media company has agreed to sell its IPL franchise Deccan Chargers to Mumbai-based real estate firm Kamala Landmarc.

The matter, however, is not that simple. For the deal to sail through, the BCCI has to give its final approval before DCHL, publishers of a clutch of newspapers including Deccan Chronicle and Financial Chronicle, ends its Indian Premier League journey. The Deccan Chronicle lenders, who are seeking to recover Rs 42 billion of debt, also have to give their consent.

DCHL informed the bourses today that its board, which met on Thursday, has resolved to "sell, transfer/dispose off the Deccan Chargers Franchise business undertakings/business division of the company to Kamla Landmarc Real Estate Holdings Private Limited".

DCHL had to furnish bank guarantee of Rs 1 billion to BCCI, which would be in force for a year. The Bombay High Court had earlier said that the BCCI‘s decision to terminate their contract was taken in a hurry and had asked DCHL to pay the guarantee by 9 October.

DCHL had earlier rejected a bid of Rs 9 billion from PVP Ventures as it had felt that the price was too low.