Shares of high-debt firms tank on liquidation fears

Shares of several high-debt companies tanked on Monday on fears that some of them would be forced into liquidation. Last week, the Reserve Bank of India (RBI) identified 12 companies against which lenders can initiate insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). The combined debt of these 12 firms is Rs 1.5 lakh crore, a quarter of total non-performing loans in the banking system. Shares of Bhushan Steel tanked 16 per cent, Alok Industries fell 11.6 per cent, Lanco Infra dropped 20 per cent, Amtek Auto declined 20 per cent, Jaypree Infra dipped 6 per cent and Monnet Ispat fell 12 per cent. These are some of the companies that could be facing bankruptcy action, according to bankers.