Group of 32 banks offer to form SPV to manage IPL Deccan Chargers franchise

first_imgA group of 32 banks has reportedly offered to form a special purpose vehicle (SPV) to manage the beleaguered IPL Deccan Chargers franchise and have sent their proposal to the Board of Control for Cricket in India (BCCI).According to reports, the proposal was placed before a BCCI working committee meeting held in Chennai on Saturday. However, it seems the Board was not keen at all on handing over the charge of the financially-crippled Deccan Chargers to the banks.Reacting to the banks’ proposal, a BCCI official reportedly said that there was no guarantee that the proposal would work smoothly, especially as the Deccan Chronicle Holdings Limited (DCHL), the owners of the franchise, have defaulted on payments several times.At an emergent meeting of the IPL governing council on Friday night, less than a day before the banks’ proposal reportedly reached the N Srinivasan- BCCI, decided to scrap the debt-ridden Deccan Chargers for “breach of contractual obligations?? and decided to float a tender to invited bidders for a new team.On Saturday morning, the DCHL, which in 2008 bought the franchise for $ 107 million at an auction, moved BCCI president N Srinivasan the Bombay High court. The court would take up the issue on Monday. And till the time the case reaches a conclusion, the BCCI has held back the plan of the new tender.DCHL is reportedly reeling under a debt of over Rs 4,000 crore. DCHL has borrowed the money from several banks and other lenders.They have not even paid the players’ salaries, which is reportedly between Rs 35 crore and Rs 40 crore.On Saturday, the BCCI’s marketing committee decided to float a fresh tender for an additional team, but did not make an announcement to that effect after the DCHL moved the Bombay High Court.advertisementThe committee also shortlisted 10 cities for that purpose – Ahmedabad, Visakhapatnam, Dharamsala, Indore, Jamshedpur, Nagpur, Cuttack, Kanpur (Greater Noida), Rajkot and Ranchi.The marketing committee also fixed the base price for the new team – Rs 300 crore for five years.Deccan Chargers got an opportunity to stay afloat when PVP Ventures, a film producing and real estate firm from Hyderabad, responding to the franchise tender, came up with a reported bid worth Rs 900 crore. But Deccan on Thursday rejected the bid, and the next day the IPL governing council terminated the franchise.last_img

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