Eros CEO says mortgage fee delays being rectified as strain mounts


MUMBAI (Reuters) – Eros Worldwide has taken steps to rectify delays in mortgage funds, Chief Government Officer Kishore Lulla mentioned on Sunday, as strain builds on the Indian media firm, with one other short-seller report flagging potential points on the firm.

“All of the steps have been taken to rectify the problems (round delayed mortgage funds),” mentioned Lulla, in a telephone interview. “And we now have no loans, or debt due within the short-term.”

The corporate has seen its New York-listed shares plunge greater than 55% final week, whereas these of its Indian subsidiary Eros Worldwide Media have sunk greater than 30%, after an Indian score company categorized debt of Eros’s Indian unit at “default” ranges because of delays in mortgage funds.

CARE Rankings mentioned on Wednesday it minimize its score “on account of ongoing delays/default in debt servicing because of slowdown in assortment from debtors, resulting in money circulate points.”

Eros’ shares plunged regardless of assurances from the agency it was working to kind out the delayed funds. Even because it sought to calm investor issues, Hindenburg Analysis – a short-seller, printed a notice here on Friday, alleging potential wrongdoing on the firm.

Lulla dismissed the allegations within the report and famous that this isn’t the primary time that the corporate is being focused by a short-seller.

“I don’t perceive what shorts try to attain right here. It’s simply making an attempt to create a smoke-screen. There’s nothing within the report that we must be nervous about,” he mentioned.

Reporting by Shilpa Jamkhandikar and Euan Rocha in Mumbai

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