Shares of Eros International Media followed with its southbound journey for the second consecutive day. Rating agency Care which had cut its long-term bank facilities rating from BBB- to default after the delay in debt servicing.
“The revision in the ratings assigned to the bank facilities of Eros International Media Ltd. (EIML) is on account of ongoing delays/default in debt servicing due to the slowdown in the collection from debtors, leading to cash flow issues in the company,” the rating agency said in a statement.
At day’s low, Eros International shares fell as much as 20% today, extending their Thursday’s 20% fall. In noon trade, Eros International shares had pared some losses and were trading 9% lower at ?48.10.
Eros International in a statement to the exchanges today said: “We would like to clarify that this is on account of a delay in servicing of Bank loans for the month of April 2019 and May 2019 and will be cleared within the next seven working days.”
Eros added, “Furthermore, the company would like to clarify that our utilization is less than Rs. 550 crores as compared to Rs. 750 crores facilities assessed by the rating agency as per the bank’s sanctioned letters.”
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