Mantri told CNBC-TV18, "Difficult to quantify a bottom for Network18 because it relatively does not have significant assets which are generating positive cash flows and many of the businesses are still at very nascent stage to support the kind of debt the company has. It has a gross debt of 2,100 crore and very difficult to service it given that it has no operating assets directly under it with more of a hold cope in case of the operating assets where the erstwhile IBN18, TV18 broadcast essentially has the cash flows."
He further added, "I think the aggressive plans of the Network18 group in an environment, which is more challenging and significantly high leverage on the books make it very difficult to call it a bottom but we are never the less very positive about the operating assets in terms of the business news channels that it has and the GEC channels in terms of Colors. However, concern continues to be high debt in this environment is relatively very difficult to service at current profitability levels."
(Note: Web18, which owns Moneycontrol.com and Indiaearnings.com, belongs to the Network 18 Group).
