Shares of Zee Learn on Tuesday tumbled over 18 per cent after Yes Bank Ltd moved National Company Law Tribunal (NCLT) seeking initiation of insolvency proceedings against the firm.
The stock plummeted 18.26 per cent to Rs 11.41 on the BSE and on the NSE, it tumbled 18.27 per cent to Rs 11.40.
Private sector lender Yes Bank has moved NCLT seeking initiation of insolvency proceedings against Zee Learn, according to a regulatory filing.
The company said Yes Bank has allegedly claimed that the total amount in default with respect to a financial facility is Rs 468 crore.
Zee Learn has received a notice from the Mumbai bench of the NCLT over Yes Bank’s petition and is in the process of compiling information to verify the facts, the filing said on Monday.
“A petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 has been filed by Yes Bank Limited to initiate Corporate Insolvency Resolution Process (CIRP) of the company, before the NCLT, Mumbai,” it added.
The company received a notice over the petition on April 25.
Zee Learn, an Essel group company, mainly operates in the education segment. It has a chain of K-12 schools, Mount Litera Zee School and a pre-school network Kidzee.