Fin institutions sell pledged shares in Pyramid Saimira

Media and entertainment firm Pyramid Saimira today said some financial institutions have sold off pledged shares of two promoters against short-term loans taken by the company to overcome a liquidity crunch.

"The sale of shares made by two promoters -- P S Saminathan and Uma Saminathan -- intimated to the stock exchanges yesterday, that is January 12, 2009, were offloaded by certain financial institutions," Pyramid Saimira said in a filing to the stock exchanges.

The company further said that it had taken short-term loans from financial institutions to recover from tight liquidity conditions it had landed into due to a tax issue and the huge loss suffered in a mega budgeted film.

The company further said that it has always intended to maintain the best of relationships with bankers and did not want any delays or defaults to any bank or institution.

"Hence, P S Saminathan and Uma Saminathan had decided to transfer certain shares and requested financial institutions to sell the same for short term loans that the company had taken," the filing said.

In December 2008, Income Tax department issued a bank attachment order against Pyramid Saimira Theater (PSTL) on a tax issue but the matter got resolved in an amicable manner. However, during this time, the company underwent a liquidity tightness on account of the same, the firm said.

Further, the company stated that as investors and the general public are well aware, the company has suffered a huge loss in a mega budgeted film called 'Kuselan' -- which has affected the company's liquidity position.