As a market participant, I do find quite concerning the fact that:
- Despite EROS not being able to repay the off-shore Credit Facility expiring in January 2017 on time ...
- ... despite EROS need to liquidate in the "open market" shares of its major revenue generating subsidiary (Co raised approx. from the sale $20sh million) ...
- ... despite the need to pledge shares of its major revenue generating subsidiary to what seem to be 2nd tier Indian lenders ...
- ... A SUBSIDIARY OF EROS IS SPENDING APPROX. $8.65 MILION TO BUY A OFFICE PROPERTY FROM INSIDERS. This becomes more interesting when we consider the fact that for the year ended 31 March 2016 EROS INTERNATIONAL FILMS PRIVATE LIMITED had revenue of just $548,157 (Rs 34,259,818), total cash and bank balances of $2.2 million (INR 13,84,79,629)
My personal view is: "A company that can't honor its debts on time ... and engages in dilutive transactions for US shareholders ... IMO ... shouldn't be buying personal assets for millions from insiders - EROS is doing just that!"
HERE IS THE PROOF:
List of EROS Subsidiaries: https://www.sec.gov/Archives/edgar/data/1532981/000117152016000992/ex8-1.htm
Is this property the registered address of EROS INTERNATIONAL MEDIA LIMITED?
901/902, Supreme Chambers,
Off. Veera Desai Road,
Disclosure: I am/we are short EROS.