Punj Lloyd soars on Singapore High Court order

NEW DELHI: Shares of Punj Lloyd closed 7 per cent on Tuesday.

In a regulatory filing to the bourses, the company said the Singapore High Court has approved in its hearing dated June 27, 2016, the application for placing both PLPL and SEC under judicial management.

Punj Lloyd and Sembawang Engineers and Constructors are subsidiaries of Punj Lloyd in Singapore and have been debt ridden. The creditors of the subsidiaries had rejected a debt-restructuring plan for one of the subsidiaries, leading Punj Lloyd to ask the Singapore High Court to place the companies under judicial management back in February 2016.

The high court has now approved a plan to allow the companies to come under judicial management.

Reacting to the development, the scrip gained 12.03 per cent to hit a high of Rs 22.35 on the BSE. The stock has slumped 25 per cent in the year so far.