Stock exchanges BSE and NSE will suspend trading in the equity shares of CDs and DVDs manufacturer Moser Baer India Ltd with effect from October 11, following the commencement for liquidation proceedings, in order to avoid market complications, according to a circular by both the exchanges.
Notably, the National Company Law Tribunal (NCLT) had initiated liquidation process against Moser Baer India last month and had also appointed Resolution Professional Anil Kohli as the liquidator. The liquidation of the company was allowed by the bench as the company failed to present any resolution plan, post the initiation of insolvency code.
In an earlier regulatory filing, Moser Baer India had said that decision by NCLT came on a plea moved by its lender Alchemist Asset Reconstruction Company Ltd. The company had further added that the average liquidation value arrived at Rs 337.45 crore, while the total financial debt it owes to financial creditors is at Rs 4,356 crore, as on the corporate insolvency commencement date.
New Delhi-based Alchemist Asset bought the debt Moser Baer had owed to the State Bank of Hyderabad, which is now merged with the State Bank of India) in March 2016. Alchemist Asset is into the business of stressed assets from banks and then restructure them. Erstwhile State Bank of Hyderabad had provided debt to Moser Baer in 2009 and 2010, and Moser Baer turned into a non-performing asset in November 2014.
On Thursday, shares of Moser Baer India were trading at Rs 1.26, down 4.55% at 2:45 PM from their previous close on BSE. Meanwhile, the BSE Sensex recovered from its over 850 points fall and traded 608.79 points or 1.69% lower at 35,369.85 points.