Stock Crash: The company’s stock has fallen by 50% in the last one month. During this period, its price has come down from Rs 11 (July 4) to the current price of 5.47.
Stock Crash: The shares of GVK Power & Infrastructure Ltd, listed in the stock market, are constantly harming their investors. The company’s stock has fallen by 50% in the last one month. During this period, its price has come down from Rs 11 (July 4) to the current price of 5.47. At the same time, it has fallen by more than 61% in the last six months. It was down by 3% on Friday and its closing price was Rs 5.47. Explain that the company is going through the bankruptcy process.
What is the detail
GVK Power and Infrastructure Ltd (GVKPIL) will face insolvency proceedings for failing to repay debts to lenders. The Hyderabad bench of the National Company Law Tribunal (NCLT) passed the order on a petition filed by a consortium of lenders led by ICICI Bank Ltd.
The company has given this information
The loan was originally taken over by GVK Coal Developers (Singapore) Pte Ltd more than a decade ago, for which GVKPIL had taken a guarantee. The NCLT bench passed the order on July 12 and it was made public on Monday. ICICI Bank filed the petition in 2022. In its order, the NCLT appointed Satish Kumar Gupta as interim resolution professional to manage the company.
According to the order, the corporate debtor accepted its liabilities and was required to pay USD 1.84 billion to lenders by June 13, 2022. This includes an principal amount of $1.13 billion, interest of $731.5 million and agency fees of $144,000.