Eros International said that "it would like to clarify that its utilisation is less then Rs 550 crore as compared to Rs 750 crore facilities assessed by the Rating Agency as per the bank's sanctioned letters".
The stock has tanked 36 per cent in the past two trading days after the rating downgrade.
said on Wednesday that the revision in the ratings assigned to the bank facilities of Eros International Media
was on account of ongoing delays/default in debt servicing due to slowdown in collection from debtors, leading to cash flow issues in the company.
"CARE had interacted with EIML's bankers and had obtained ‘Default if any’ statements from the company which mentioned delays/default in debt servicing (both principal and interest) in the terms loans availed by the company," rating agency in rating rational said, adding that the company had also obtained statements regarding delay in servicing interest on cash credit and packing credit for more than 30 days, and a delay of more than 30 days in payment of bills.
At 09:32 am, Eros International was trading 18 per cent lower at Rs 43.70 on the back of heavy volumes. The trading volumes on the counter jumped over nine-fold with a combined 3.15 million shares changing hands on the NSE and BSE so far.