Moneycontrol Bureau
Shares of Lycos Internet (earlier known as Ybrant Digital (before that it was LGS Global)) are locked at 20 percent lower circuit at Rs 19.05 (fresh 52-week low) on Wednesday after its US subsidiary filed for bankruptcy protection. There were pending sell orders of 26,857 shares, with no buyers available, at 12:52 hours IST.
"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 (search engine) purchase," says the Hyderabad-based internet advertising company in its filing.
YMA, which 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, says the company.
Ybrant Media Acquisition bought search engine Lycos Inc from South Korea’s Daum Global Holdings Corp for USD 36 million in 2010.It has made USD 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.
"This filing for bankruptcy protection gives us necessary time and space to effectively continue discussions and reach a settlement on mode and amount of payment," says the company, adding this will not have any impact on current operations of the company.Posted by Sunil Shankar Matkar
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