Thursday, February 19, 2009

The season for mea culpa(An interesting Reading from First Global)

Hand it to Ramalinga…now suddenly, there are companies that are coming out and saying the unspeakable…no, not that they cooked their books or that they rode tigers on the weekends or some such thing…but that they had essentially lied to the public for the past many months, when swirlingrumors of their business troubles first emerged.

Subhiksha, a major aspirant to the crown of India’s Wal-Mart, is a good case in point. Mr.Subraminam, an IIM-Ahmedabad graduate, Subhikhsha’s promoter, sent out a 9-page press release last week, and handed out interviews to just about any newspaper that employed a journalist. The sum and substance of this unbelievable PR campaign is that: “We are near bust. We have no money.We have unpaid salaries of Rs.180 mln or so, due since last October. We haven’t paid vendors or store rents for weeks/months. Operations are at near standstill. We are talking to PEs and Banks to raise money. We need lots of money, and it doesn’t matter whether it’s debt or equity…”

Well, well.

Read the full story  right here