In pic: K Balachander
Dubbing the reports are totally baseless and false, it said KB's house and office properties have not been pledged or sold. "We are issuing this note to the press as the unverified rumours have caused a great deal of distress to our friends and well-wishers across all sections of the society."
The statement said Kavithalaya had availed a working capital facility against the security of a commercial property owned by the family members of Balachander from UCO Bank for normal business activities.
"In 2016, the company, recognising the changing dynamics and trends in the entertainment industry, decided to scale down its film production activities and focus on digital content creation for new media platforms."
It said the company paid back a substantial portion of the outstanding debt and had been in negotiations with the bank for settlement of the balance amount on or before 31 March 2018.
"Before the negotiations could be concluded, the bank in accordance with their procedures, issued a notice of auction in one of the dailies, which in turn led to these rumours."
The statement said Kavithalaya had availed a working capital facility against the security of a commercial property owned by the family members of Balachander from UCO Bank for normal business activities.
"In 2016, the company, recognising the changing dynamics and trends in the entertainment industry, decided to scale down its film production activities and focus on digital content creation for new media platforms."
It said the company paid back a substantial portion of the outstanding debt and had been in negotiations with the bank for settlement of the balance amount on or before 31 March 2018.
"Before the negotiations could be concluded, the bank in accordance with their procedures, issued a notice of auction in one of the dailies, which in turn led to these rumours."
