Zee Entertainment settles insolvency dispute with IndusInd Bank
Zee Entertainment Enterprises Ltd and IndusInd Bank have entered into a settlement agreement by which all disputes and claims have been settled between the Company and the Bank, Zee Entertainment informed the exchanges on 29 March 2023.
As per the terms of the settlement agreement entered into by the Zee Entertainment and IndusInd Bank Limited, there is no penalty paid and no material impact on the financial position of the company
IndusInd Bank had filed an insolvency plea against Zee Entertainment Enterprises for defaulting on a payment of Rs 83.08 crore. The NCLT had appointed Sanjay Kumar Jhalani as the interim resolution professional.
According to the filing, Zee Entertainment Enterprise is a party to the Debt Service Reserve Account (DSRA) Guarantee Agreement entered into with IndusInd Bank for the term-loan facility advanced to another Essel Group firm, Siti Networks Ltd.
Zee Entertainment had moved National Company Law Appellate Tribunal (NCLT) against the NCLT’s order allowing the initiation of corporate insolvency proceedings against the company. A two-member NCLAT bench ruled in favour of Zee and stayed the order passed by the Mumbai bench of the National Company Law Tribunal (NCLT).
The settlement agreement entered with IndusInd Bank clears the way for Zee Entertain-Sony Pictures merger deal.
Earlier, the company had entered into a similar agreement with the Indian Performing Right Society Limited (IPRS), which had also filed an insolvency plea against Zee.
Indian Performing Right Society Limited had filed the insolvency petition under Section 9 of the Insolvency and Bankruptcy Code (IBC) against Zee for defaulting on a payment of Rs 211 crore.
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.
Another Zee group company – Zee Learn – is also facing insolvency proceedings after NCLT admitted the insolvency application filed by Yes Bank after the former defaulted on a payment of Rs 469 crore.
Also Read: IPRS withdraws insolvency plea against Zee Entertainment
