Worried about the implications of the financial mess at Deccan
Chronicle Holdings and its bearings on the IPL franchise Deccan
Chargers, the IPL Governing Council (GC) has given the franchise
owners 14 days to sort out the matter.
IPL GC had called for a meeting in New Delhi to discuss the
issue after learning that the owners who run Deccan Chronicle
newspaper have mortgaged the franchise to some banks in order
to tide over the liquidity crunch that has hit the company.
to IPL rules, team owners are prohibited from mortgaging their
teams as it has the potential to put it in a jeopardy which
will also have an impact on the IPL.
governing council today heard both sides--the franchise owners
as well as representatives of the banks. We have given Deccan
Chargers, 14 days time to sort out the mess and get back to
us," an IPL GC member said after the meeting.
the issues are not sorted out within the next fortnight, we
will decide on further course of action," he added.
owners of Deccan Chargers are planning to sell the IPL team
to raise cash to fund their debt. Religare Capital Markets
has been mandated to find a new buyer for the team.
gravity of the situation can be gauged from the fact that
the DCHL promoters have pledged their entire holding to ICICI
Bank, Future Capital Holdings (Kishore Biyani has since taken
the liability), and Religare FinVest.