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19 Dec 2008 16:05
India Hospitality Corp. Trading Update
LONDON, Dec. 19 -- India Hospitality Corp. (the "Company") today announced the following.
Trading continues to be difficult due to the current economic environment and in particular the difficult circumstances being experienced by the Indian aviation industry. The recent atrocities in Mumbai have also impacted the Mars business as some of its hotels and restaurants are close to the areas affected.
As a result, the Company's operating cash flow in recent months has been uneven. The immediate focus of the Board has therefore shifted to cash preservation and cost control which, in the absence of additional funding, will result in delays in planned capital expenditure and the Company being unable to take advantage of growth opportunities.
Given the current trading situation of the Company, the Board believes that the Company needs to raise additional finance or reschedule its existing indebtedness over the next few months. The Company is currently in the process of exploring all potential sources of further funding (both from existing shareholders and third parties) and monitoring its position under its banking covenants. The Company is not currently in breach of its banking covenants.
A webcast of an investor conference call and the related investor presentation held on 10 December 2008 can be downloaded from the following weblink http://ir.indiahospitalitycorp.com/events.cfm.
Deutsche Bank AG is IHC's nominated adviser and broker for the purposes of the AIM Rules for Companies. Its responsibilities as IHC's nominated adviser and broker under the AIM Rules for Nominated Advisers are owed solely to London Stock Exchange plc and not to IHC, any director of IHC or any other person.
SOURCE India Hospitality Corp.
/CONTACT: Media, Mutual Image & Events Management Pvt. Ltd., Harsh Wardhan, +91-11-41-416523; or Investor Relations Contact: ICR Inc., William Schmitt, +1-203-682-8200; or Nominated Adviser and Broker: Deutsche Bank, Mumtaz Naseem, +44-20-7545-8000 /
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