Scotching rumours about the sale of properties belonging to director K Balachander, his production house Kavithalaya Productions has said that the properties in question were pledged to avail a loan from a bank and it was a business decision.
A statement from Kavithalaya said: Kavithalayaa had availed a working capital facility against the security of a commercial property owned by the family members of Mr. K.Balachander from UCO Bank for normal business activities.
In 2016, the company recognizing the changing dynamics and trends in the entertainment industry, decided to scale down its film production activities and focus on digital content creation for the new media platforms.
The company paid back a substantial portion of the outstanding debt and had been in negotiations with the bank for settlement of the balance amount on or before 31″ March 2018.
Before these negotiations could be concluded, the bank in accordance with their procedures, issued a notice of auction in one of the dailies, which in turn led to these rumors.
We request all our friends, well-wishers, business associates and fans of KB along with the fans of several celebrities and his mentees not to be misled by these reports and express our heartfelt thanks for their expression of support. As the matter is sub-judice, we are issuing this clarification only to place the facts.
“We are issuing this note to the press as the unverified rumours have caused a great deal of distress to our friends and well-wishers across all sections of the society,” the statement said.