With a string of films like Horror Story and Ankur Arora Murder Case this year and 1920 Evil Returns and Dangerous Ishhq last year proving to be damp squibs, the production house that Vikram Bhatt is associated with is apparently finding itself in hot waters.

According to the industry buzz, ASA Productions is facing a major financial crunch and was unable to even pay the salaries of their staff members.

Says a source, `For the past four months the staffers have not been paid their dues. They thought things would brighten up during Diwali but forget a bonus there was not even the salary or the arrears in sight.`

Adds the source, `Since the past two years, none of the films that they produced did well. The film directed by Vikram himself, Dangerous Ishhq, tanked badly. Even though some projects were small budget projects, yet they could not recover the costs involved.`

Vikram however claims, `Just the salary for October is pending. Things are not so bad.`

Incidentally, ASA Productions was floated in 2006 with Bhatt as full-time director.

The filmmaker is currently busy with his horror flick, Creatures starring Bipasha Basu. This project is being produced by another production house along with his own banner.

The source further states, `The staffers feel that Vikram Bhatt is slowly moving out of ASA Production. He is busy directing films for other banners and others are not too sure of the future of the production house.`