2 days ago
Zee Entertainment shares fall as lenders challenge NCLT repayment plan
Zee Entertainment’s share price fell sharply on the stock market.
It dropped more than 14% at one point on Monday, 31 August.
Three lenders objected to a repayment plan approved by a tribunal.
The plan would distribute ₹6.25 crore among creditors.
It would also set aside ₹25 lakh for the insolvency process.
The lenders say they will challenge the decision.
Their appeals will be considered by another tribunal called the NCLAT.
Investors sold Zee shares as the dispute increased uncertainty around the company.
Zee Entertainment shares fell as much as 14.3% to ₹87 on the BSE on Monday, 31 August.
The stock opened at ₹100.85, compared with its previous close of ₹101.55, and later traded nearly 9% lower at ₹92.45.
Canara Bank, Union Bank of India and LIC Housing Finance said they would challenge the NCLT-approved repayment plan.
The plan allocates ₹6.25 crore to creditors and ₹25 lakh for insolvency-process costs.
The lenders’ appeals will take the dispute to the National Company Law Appellate Tribunal.
- Who
- Zee Entertainment, Canara Bank, Union Bank of India, LIC Housing Finance and the National Company Law Tribunal.
- What
- Zee Entertainment shares fell sharply after three lenders announced appeals against an NCLT-approved repayment plan.
- Where
- Zee Entertainment shares traded on the BSE, and the appeals will go to the NCLAT.
- When
- The share-price fall occurred on Monday, 31 August; the NCLT approved the plan on 25 August.
- Why
- The lenders opposed a plan distributing ₹6.25 crore against admitted claims of approximately ₹22,006.57 crore.
Lenders challenging the plan
NCLT-approved repayment plan
Creditor recovery
Lenders challenging the plan
Canara Bank, Union Bank of India and LIC Housing Finance opposed the plan and said they would challenge the NCLT order.
NCLT-approved repayment plan
The approved plan provides ₹6.25 crore for distribution among creditors, despite admitted claims of approximately ₹22,006.57 crore.
Tribunal decision
Lenders challenging the plan
The three lenders’ appeals will take the dispute to the National Company Law Appellate Tribunal.
NCLT-approved repayment plan
The National Company Law Tribunal approved the plan on 25 August despite objections from several financial creditors.
Key facts
- Intraday decline
- 14.3%, to ₹87
- Opening price
- ₹100.85
- Previous close
- ₹101.55
- Creditor distribution
- ₹6.25 crore
- Insolvency-process costs
- ₹25 lakh
- Admitted claims
- Approximately ₹22,006.57 crore
- Year-to-date performance
- Shares were up 1%, compared with a 10% fall in the Sensex
- One-year performance
- Shares had fallen 21%; the 52-week range was ₹68.10 to ₹121.75
Sources
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