Publications company Cyber Media (India) Ltd (CML) has mortgaged the brand name of the yet-to-be-launched magazine -- Business Week India -- with public sector State Bank of Mysore (SBM).
The company has procured a long-term loan and working capital facility by mortgaging the brand name. It has also mortgaged the brand name of its flagship magazine DataQuest with a negative lien on all other magazine brands owned by the company to secure the loan.
"The pledge was offered as a collateral security for the term loan and working capital facilities in the ordinary course of the business," said a company official. CML has plans to launch the Indian edition of Business Week and the proposal is pending with the ministry for approval.
"The government is yet to take a decision on allowing foreign publication houses to operate in India. But we have firmed up plans to launch Business Week India. The government has formed an expert committee to look into the issue," said Pradeep Gupta, chairman and managing director, CML.
The company, however, managed to mortgage the brand name of Business Week India with SBM.
Gupta said that the move reveals the farsightedness of the bank. CML has never defaulted on its loan obligations with any bank, although it went into losses a couple of years ago, he said.
"The ministry of information and broadcasting regulates the publication business. The company need to obtain certain approvals for any of its existing or new venture from time to time and the proposal is also pending with the government," said a company official. Business Week is the largest business magazine globally and has licensed Cyber Media for publishing Business Week India.
"The magazine will focus on money, technology and people, and will provide relevant blend of global and Indian content. It will be the only international business magazine to provide readers a global perspective for India," said Gupta. "The government's policy about foreign content of the magazine is, however, yet to be finalised," he added.
