Why Zee Entertainment shares crashed 14% today
What's the story
Zee Entertainment witnessed a massive fall in its share price on Monday. The company's shares opened at ₹100.85, down from the previous close of ₹101.55, and fell as much as 14.3% to an intraday low of ₹87. However, the stock later recovered slightly and was trading nearly 8% lower at ₹93.82 around 1:30pm on the Bombay Stock Exchange (BSE).
Legal battle
Lenders challenge NCLT's approval of Chandra's repayment plan
The sharp decline in Zee Entertainment's share price comes after three lenders, Canara Bank, Union Bank of India (UK), and LIC Housing Finance, announced their decision to challenge the National Company Law Tribunal's (NCLT) approval of a repayment plan proposed by Essel Group founder Subhash Chandra.
The lenders had earlier opposed the plan that proposed ₹6.25 crore for creditors and another ₹25 lakh for insolvency process costs.
Tribunal decision
Plan provides for ₹6.25 crore to be paid to creditors
Despite objections from several financial creditors, the NCLT approved Chandra's plan on August 25.
The approved plan provides for ₹6.25 crore to be paid to creditors against admitted claims of around ₹22,006.57 crore.
The lenders' appeals against this NCLT order will now take the dispute to the National Company Law Appellate Tribunal (NCLAT).