Deccan Chronicle shares fall for 10th day amid 'liquidity crisis'
KV Kamath, the non-executive chairman of Infosys and chairman of the ICICI bank, is optimistic that the Indian economy will see a turnaround soon. Commenting on the reforms process, he said that the animal spirit of the economy had not been slaughtered ye
Shares in Deccan Chronicle Holdings fell for a 10th consecutive session to a record low on Thursday even after its chairman sought to assure markets the company had enough assets to face what he called a "liquidity crisis."
The owner of newspapers such as the Deccan Chronicle and Financial Chronicle has faced a barrage of media reports that the company is struggling for survival, sending its shares down 52 per cent from July 20 to Wednesday's close.
Its main stakeholders have pledged shares with other companies, including consumer and mortgage loan provider Future Capital Holdings, to raise funds, according to exchange statements.
"DCHL would like to clarify that the real issue is a liquidity crisis that has arisen due to significant reduction in ad spend by domestic and multinational companies in India," Deccan Chairman T. Venkattram Reddy wrote in a statement posted on the company's website.
Reddy added that the "value of its fixed assets comprising land and buildings as well as plant and machinery at multiple locations, and the value of the Deccan Chargers IPL (cricket) team far exceed the company's debt."
Deccan is also "actively engaging" with lenders to find a solution, Reddy added.
Deccan shares were last down 4.7 percent at a record low of Rs 13.30.
Copyright Thomson Reuters 2012