Asst Professor, Lovely Professional University, Jalandhar NH1, Phagwara, Punjab
Online published on 30 September, 2013.
"We are in pain but we are not shutting down, we had expanded rapidly; most of the growth was debt-led. The company had planned to raise equity during 2008 and was close to doing so in September when calamity hit the global markets. The company's lenders, while supportive, were also unable to extend further lines unless the equity was raised. The banks were not lending to each other, forget about lending to us…. It became a chicken-and-egg story with the company running out of cash by October. We were making money up to September, so the business is viable; it's just that the balance sheet was not…. Money is like blood. If the blood flow stops, the entire brain stops working."
