More Troubles For Pyramid Saimira
The impact of the credit crunch couldn't be more pronounced. After recent disclosures about the pledging of promoter shares in Satyam, it has now emerged that Pyramid Saimira's promoter has also pledged his shares to financial institutions. Since PS Saminathan couldn't meet margin calls, the institutions have been selling his shares in the open market.
Pyramid was in the thick of the action because of the poor response for Kuselan and also because of the abandoned Marmayogi project.
Theatre chain operator Pyramid Saimira Theatre Ltd clarified on Tuesday that some financial institutions, with whom promoters had pledged their stake, sold 6 percent in the firm between October and December.The company clarified that it was facing a liquidity crunch and then suffered losses in a mega-budget film, 'Kuselan,' prompting the promoters to pledge some shares to raise funds.Kuselan, a Tamil film which was also re-made in Telugu, was released in August 2008 and fared miserably on the box office.As the current period is the peak season in south India for film release and confirmations, the firm hopes its locked-in money will be released, easing the cash crunch. (Link)
I expect more troubles for Pyramid Saimira as they have been hit badly on both the business and financial front. Other issues relating to the SEBI letter and promoter's fight have cast a bad light on them. Cancellation of Marmayogi and sudden termination of Simran Thirai have not helped them either. I wouldn't be surprised if they go bust in the near future.