India Hospitality Corp. Trading Update
LONDON, Dec. 19 -- India Hospitality Corp. (LSE: IHC or India Hospitality)
(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 /