NEW DELHI: Fears of insolvency proceedings gripped Videocon as the stock rolled down 5 per cent on Tuesday.
The company has informed stock exchanges that an interim resolution professional (IRP) has been appointed for its insolvency process.
The stock hit 5 per cent lower circuit limit at Rs 7.56 on the BSE just after the announcement.
"National Company Law Tribunal, Mumbai Bench, Mumbai (NCLT), vide an order dated June 6, 2018, has admitted the reference for initiation of corporate insolvency resolution process (CIRP) in respect of the company under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC)," the consumer electronics firm said.
Anuj Jain has been appointed the IRP under the provisions of the IBC, it said.
More than a dozen Videocon Group companies cumulatively owe about Rs 13,000 crore to lenders. The debt-ridden firm is hopeful that its lenders will be able to recover up to 80 per cent of the Rs 20,000 crore debt.