Zee Learn’s share fell nearly 20% to Rs 11.25 after Yes Bank initiated insolvency proceedings against the company alleging a default on a financial facility worth Rs. 468 crores.
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“The company is compiling information to verify the facts claimed in the said petition filed by Yes Bank Limited,”, Zee Learn said in an exchange filing on April 25.
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Yes Bank has filed for bankruptcy under Section 7 of the Insolvency and Bankruptcy Code, 2016 in the Mumbai bench of the National Company Law Tribunal, according to the filing.
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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.
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“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.
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Zee Learn shall keep the exchange updated on the further developments in the matter, it said.
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In the December quarter, the company reported a net loss of Rs 4.91 crore as against the net loss of Rs 0.20 crore during the quarter ended December 2020. Sales rose 1.47% to Rs 51.94 crore in the quarter ended December 2021 as against Rs 51.19 crore during the quarter ended December 2020.
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Zee Learn is part of the Essel Group that operates in the education segment across India.
