Indian Performing Right Society files insolvency petition against Zee Entertainment
Zee Entertainment faces fresh troubles as yet another creditor files an insolvency petition against the media company.
In an exchange filing, Zee Entertainment informed that one of the operational creditors — Indian Performing Right Society Limited – has filed an insolvency petition under Section 9 of the Insolvency and Bankruptcy Code (IBC) for defaulting on a payment of Rs 211 crore.
“A Petition has been filed against the Company under Section 9 of the Insolvency and Bankruptcy Code, 2016 read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules 2016, by the Indian Performing Right Society Limited (IPRS), an Operational Creditor, before the Hon’ble National Company Law Tribunal, Mumbai Bench for initiation of Corporate Insolvency Resolution Process against the Company, claiming a debt and default of Rs. 211,41,82,521, towards royalty payable for utilization of literary and musical works,” the company informed the exchanges.
Zee Entertainment further says that it will be filing its reply rejecting the claim on the ground that there is a pre-existing dispute between the parties on the claimed amount, the claim is not in consonance with the interpretation of the law on the point of payment of royalties for “literary and musical works” by the Delhi High Court, and hence, the claimed amount is not due or payable to IPRS.
The IPRS is a representative body of owners of music, viz. composers, lyricists (or authors) and the publishers of music and is also the sole authorized body to issue licences for usage of musical works & literary music within India.
IDBI Bank has also filed an insolvency application against Zee Entertainment with the Mumbai bench of the National Company Law Tribunal (NCLT) for defaulting on a payment of Rs 149.60 crore, the company said in a recent exchange filing.
The Subash Chandra-promoted group in the exchange filing said that bank’s ‘purported claim arises under a Debt Service Reserve Agreement entered into by the bank and the Company for the financial facility availed by Siti Networks Limited.
Zee Entertainment said in the statement that it has ‘vehemently’ disputed IDBI Bank’s claim in other proceedings filed by the bank against the company for recovery of its alleged dues.
Also read: IDBI Bank drags Zee Entertainment to insolvency court
