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HYDERABAD, April 2

COUNTRY Club (India) Ltd, the city-based hospitality major, has decided to avail loans from other banks and financial institutions to clear the dues of Prudential Bank. The company has also decided to strip some of its assets if required to clear the existing dues to the banks.

Interestingly, Prudential Bank employees had staged demonstrations in front of the Country Club properties demanding repayment of the loans.

Admitting that the company owes sizable amounts to the troubled Prudential Bank, the Country Club Chairman and Managing Director, Mr Y. Rajeev Reddy, said in a release here on Tuesday, that the company was in the process of clearing them.

Mr Reddy said he borrowed funds from Prudential Bank by way of an overdraft arrangement while submitting collaterals in the form of high-value properties. These borrowings were availed of at a high rate of interest. "In view of the high interest rate, we are in the process of finalising alternative arrangement for loans at lesser rate of interest to facilitate the closure of the overdraft. The repayment to the bank will be arranged from the internal accruals and borrowings at lower interest rate from other institutions," he said.

Stating that the delay in repayment of dues to Prudential Bank was due to adverse business conditions prevailing in the leisure and entertainment sector, Mr Reddy said the company was committed to repay the overdraft at the earliest.

"We would like to reiterate that securities of adequate value as per bank's norms have been provided. If required, we would also make arrangements to dispose of some of our assets and meet our obligations to banks. The company reiterates its commitment to safeguard the interests of banks, members and other stakeholders," he added.

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