Lycos Internet vaults after US subsidiary moves out of Chapter 11

Lycos Internet was locked at 10% upper circuit at Rs 6.98 at 10:30 IST on BSE after the company announced that its wholly owned US subsidiary Ybrant Media Acquisition has moved out of Chapter 11.

The announcement was made before market hours today, 23 August 2017.

Meanwhile, the S&P BSE Sensex was up 128.82 points or 0.41% at 31,420.67. The S&P BSE Small-Cap index was up 133.91 points or 0.87% at 15,522.53.

High volumes were witnessed on the counter. On the BSE, 10.67 lakh shares were traded in the counter so far as against average daily volume of 3.21 lakh shares in the past one quarter. The stock was locked at a high of Rs 6.98 so far. The stock had hit a low of Rs 6.40 so far during the day. The stock had hit a 52-week high of Rs 12.69 on 8 September 2016. The stock had hit a 52-week low of Rs 6.20 on 11 August 2017.

The stock had dropped 6.89% in three sessions to settle at Rs 6.35 yesterday, 22 August 2017, from a close of Rs 6.82 on 17 August 2017.

The stock had underperformed the market over the past one month till 22 August 2017, falling 17.96% compared with 2.3% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 4.94% as against Sensex's 2.36% rise. The scrip had also underperformed the market in past one year, dropping 44.54% as against Sensex's 11.81% rise.

The small-cap company has equity capital of Rs 95.25 crore. Face value per share is Rs 2.

Lycos Internet announced that its wholly owned US subsidiary Ybrant Media Acquisition has moved out of Chapter 11. While the required funds were not yet available, Lycos informed the court that significant progress was made toward completion of the financing.

United States Bankruptcy court of NY denied confirmation of the plan filed by the debtor causing YMA to being moved out of Chapter 11. The Judge advised both YMA and Daum to settle the case out of court. Lycos reached out to Daum consultant to lay the ground work for settlement discussion.

This chapter of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.

Lycos Internet reported net loss of Rs 0.04 crore in Q1 June 2017 compared with net loss of Rs 0.23 crore in Q4 March 2017. Net sales fell 5.97% to Rs 110.86 crore in Q1 June 2017 over Q4 March 2017.

Lycos Internet offers digital marketing solutions to businesses, agencies and online publishers.

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