Shiv-Vani Oil, Geodesic tumble after London Court ruling

Shiv-Vani Oil & Gas Exploration Services and Geodesic were, both, locked at 5% lower circuit level on BSE, extending Thursday's slide triggered by a London Court ruling directing the two firms to make payment to bondholders including default interest

Meanwhile, the S&P BSE Sensex was up 124.60 points or 0.61% at 20,661.24.

Shiv-Vani Oil & Gas Exploration Services was locked at 5% lower circuit at Rs 12.40. The stock had tumbled by the maximum permissible level of 5% to settle at Rs 13.05 on Thursday, 20 February 2014 after the company during trading hours on Thursday, 20 February 2014, said that a London Court has given the Summary Judgment in the case filed by the bondholders through their Trustees, Citibank N A, London (Citibank). According to the Judgment, the company has to pay to Citi Bank a sum of $84 million, a sum of $2.21 million default interest unto 11 February 2014 and $11,988 per day of default interest from 11 February 2014 up to the day of payment.

Shiv-Vani Oil & Gas Exploration Services said it is proposing to file appeal against this judgment within the prescribed period of limitation and also seek stay of the judgment.

Geodesic was locked at 5% lower circuit at Rs 2.86. The stock had tumbled by the maximum permissible level of 5% to settle at Rs 3.01 on Thursday, 20 February 2014, after the company after market hours on Wednesday, 19 February 2014, said that the London Court has given a Summary Judgment in the case filed by the bondholders through their Trustees, Citibank N.A., London (Citibank). According to the Judgment, the company has to pay Citibank a sum of $157.06 million, a sum $14.88 million in respect of unpaid default interest up to and including 7 February 2014 and $39,266.06 per day of default interest from 8 February 2014 up to the date of payment.

It is also ordered that the company would also have to pay the cost of the proceedings i.e. 1,22,500 pounds excluding of VAT, Geodesic said. The company said it is in discussions with the bondholders for a settlement.

Geodesic reported a net loss of Rs 37.58 crore in Q2 December 2013 as against net profit of Rs 14.34 crore in Q1 September 2013. Net sales declined 66.57% to Rs 8.13 crore in Q2 December 2013 over Q1 September 2013.

Geodesic provides IT solutions to the enterprise and the retail segments. The company offers its solutions across smart phones, tablets and desktop computers.

Shiv-Vani Oil & Gas Exploration Services is a service provider catering to the upstream segment of the oil and gas industry.

On a consolidated basis, Shiv-Vani Oil & Gas Exploration Services reported net loss of Rs 192.31 crore in Q3 December 2013, higher than net loss of Rs 11.31 crore in Q3 December 2012. Net sales dropped 78.1% to Rs 59.43 crore in Q3 December 2013 over Q3 December 2012.