The BCCI is reported to be worried about the sale of the Deccan Chargers, who have floated a tender for its Sale.
The BCCI fears that there might be litigation in the sales of the Deccan Chargers as the share holders have to approve the sale and there might be a hitch in this.
Other problems are-
Kotak Mahindra bank has stipulated that the sale must not be effected without their approval.
Yes bank insists that the sale proceeds must be deposited in a Neutral bank and not in ICICI, who is also a Lender to DCHL.
The Players Contract is to be renewed by OCT 2013.
Excepting the last part where there is a cause for worry(even this can be sorted out as the ownership changes need not change the organisational structure-the Players are a part of the Organisation as any executive is as for as Company Law is concerned, there is no need for the BCCI to be worried about, especially Shshank Manohar with them.
If the BCCI is worried then there must be some thing that we do not know about.
If the franchisee agreement is as per the standard version, then there is no cause for worry as the liability of the one who is the Principal is limited to the extent of their interest.
If the Franchisee Agreement has any other clause stipulating indirect ownership for the Principal in some form like Directorship then there is a serious cause for worry.
There was some speculation over the Constitution of the Board and it was cleared by the statement issued to the Bombay Stock Exchange and the National Stock Exchange by Deccan Chargers .
“”With reference to and in the light of various media reports and speculation regarding the shareholding pattern of Indian Premier League franchisees, we would like to place on record, Deccan Chargers is owned by Deccan Chargers Sporting Ventures Limited, a 100 per cent subsidiary of Deccan Chronicle Holdings Limited,”
http://cricket.rediff.com/report/2010/apr/15/deccan-chargers-divulge-ownership-details.htm
Is this the Truth or ….?
The board spelt out its apprehensions, centred essentially around the possibility of litigation, in an internal note circulated to its working committee as a brief before the committee’s meeting on Tuesday.
The note says that the board has apprehensions of being “dragged into litigation from disgruntled banks, creditors or minority shareholders unhappy with the sale process”. It goes on to say, “as part of this litigation, the sale process may be blocked by an injunction”.
The board further admitted it may have an idea about how much money the owners of theDeccan Chargers (DC) have taken from three private banks (ICICI, Yes and Kotak), but “there continues to be a lack of clarity as to the full extent of DCHL’s financial problems”. The note also explains how finding a replacement for DCHL is an urgent need as players’ contracts are up for renewal on October 31.
Related articles
- Deccan invite bids from prospective buyers (cricketnext.in.com)
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