Inventory of Zee Be taught tanks 19% as Sure Financial institution initiates insolvency proceedings

Shares of Zee Be taught, a part of the Essel group, tumbled 19 per cent on the BSE on Tuesday after Sure Financial institution initiated insolvency proceedings towards the corporate. The corporate closed commerce at Rs 11.3 apiece, down 19.3 per cent over the day before today’s shut.

In a disclosure to the inventory exchanges on Monday, Zee Be taught had stated that the non-public sector lender had moved the Nationwide Firm Legislation Tribunal (NCLT), claiming that the corporate had defaulted on a mortgage of Rs 468 crore.

Zee Be taught was within the means of compiling info to confirm the info, it stated, including it could reply appropriately. Nevertheless, Zee Be taught is the second agency after Dish TV the place Sure Financial institution and Essel group promoters are at loggerheads.

The lender is the most important shareholder in Dish TV, with a 25.6 per cent stake within the firm, the place it has been looking for a change in administration. Final month, Essel group chairman Subhash Chandra had stated in an interview to Enterprise Normal that the financial institution must determine on its position as a shareholder or lender of Dish TV.

Chandra additionally stated the group was open to exploring a number of choices to settle the dispute, together with shopping for again the shares held by the financial institution, merging Dish TV with one of many rival gamers similar to Airtel and Tata Play, and appointing a mediator to resolve variations.

On Tuesday, shares of Dish TV remained flat on the BSE, closing commerce at Rs 16.3 apiece.

Chandra had pledged Dish TV shares, owned by his brother Jawahar Goel, as safety for the credit score services availed by Essel group from Sure Financial institution.

The lender had claimed that it had prolonged loans of Rs 5,270 crore to 10 completely different Essel group entities between 2015 and 2018. Chandra, nonetheless, stated that the Essel group promoter entities really owed Rs 4,200 crore to the financial institution and that the dispute was hurting Dish TV’s enterprise and stakeholders.

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