locked in lower circuit of 20% at Rs 19.05, also its 52-week low on the BSE, after the company said that its US subsidiary, Ybrant Media Acquisition(YMA) filed for bankruptcy protection.
“Our US step down subsidiary, Ybrant Media Acquisition (YMA) has filed for Chapter 11 protection with US courts in order to create breathing room necessary to complete settlement talks on Lycos Inc purchase,” Lycos Internet, which formerly known as Ybrant Digital, said in a statement.
The company said this will have no impact on the current overall operations of the company. It’s purely a move to protect the shareholder interest in the ownership of the asset Lycos Inc.
This said filing give us necessary time and space to effectively continue discussions and reach a settlement on mode and amount of payment, it added.
YMA is an acquisition vehicle that was used to buy and own Lycos Inc asset, has no significant operations other than related to Lycos Inc ownership.
The company has made $20 million first payment in 2010 towards purchase of Lycos Inc but then there has been difference of opinion on final amount due between seller and company, Lycos Internet said.
The trading volumes on the counter jumped over five-fold with a combined 6.51 million shares changed hands on the BSE and NSE. There were pending sell orders for 91,899 shares on both the exchanges at 02:16 PM.