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?
