DQ Entertainment in refinancing talks amid bad debts

2nd Jun 2014 13:01

Cartoon producer and distributor DQ Entertainment is in talks to refinance the business after earmarking 230m Indian rupees (£2.3m) for bad debts, undermining its shares.Hyderabad, India-based DQ said debtors were not repaying money owed as quickly as expected, which had put pressure on its cash flow and working capital, although its banks had been supportive."We have been exploring options for a longer-term funding solution for the company to crystallize the large and growing pipeline of orders as quickly as possible," it explained."In this regard we are in active discussions with strategic/financial investors to refinance the business."Programmes launched in 2013 included The New Adventures of Peter Pan and The Jungle Book TV series - Season 2. Other titles include Robin Hood Mischief in Sherwood, Manav and Tutenstein, an Emmy Award-winning animated series made for Discovery Kids channel.It said the first season of Peter Pan had done exceedingly well and broadcast partners ZDF in Germany, Tele Quebec Canada and De Agostini in Italy - had already approved a second season.DQ said annual profits in the year to the end of March rose to 456m Indian rupees (£4.6m) from 427m (£4.3m) a year ago.Shares in the group slumped 5.5p or 31% to 12.25p by 13:06 in London.PW