Future Capital Holdings cuts exposure to Deccan Chronicle

MUMBAI: The promoters of Future Capital Holdings ( FCH) have taken over the entire loan given by the company to Deccan Chronicle Holdings, the Mumbai-based financial services company said on Friday.

FCH told the stock exchanges that its board has reviewed the loans given to Deccan Chronicle worth Rs 170 crore, and it has been decided that promoters would take "over the entire loan exposure of the company (FCH) to the Deccan Chronicle Group at book value".

"With this assignment, FCH will cease to have any exposure to the Deccan Chronicle Group. The promoter group intends to take all action necessary to safeguard all its entitlements and rights after this assignment," the announcement said.

The statement did not give any reasons.

Rating agency CARE downgraded Deccan Chronicle in July citing default by the company, while lender IFCI has filed a winding up petition in the Andhra Pradesh HC accusing the company of defaulting on payment of 27.80 crore.