NCLAT closes CIRP against Zee after settlement with IndusInd Bank
The National Company Law Appellate Tribunal (NCLAT) has disposed of the appeal filed by Zee Entertainment Enterprise promoters after the company reached a settlement with IndusInd Bank following payment of all dues to the financial creditor.
The settlement agreement was reached on March 29, 2023, and all payments were made before June 30, 2023. The settlement agreement also included a provision to close the Corporate Insolvency Resolution Process (CIRP) against ZEEL.
The NCLAT has also directed both the parties to pay the cost that the interim resolution professional incurred during the period of the resolution process.
The CIRP was initiated against Zee Entertainment on February 22, 2023, after IndusInd Bank claimed that the company had defaulted on a loan of Rs 83.08 crore. The CIRP was stayed by NCLAT on February 24, 2023, after Zee Entertainment Enterprise promoters filed an appeal.
The settlement between Zee Entertainment and IndusInd Bank comes at a time when the company is merging with rival Culver Max Entertainment Pvt Ltd, formerly known as Sony Pictures Networks India. The merger will create India’s biggest media empire.
In short, the NCLAT has disposed of the appeal filed by Zee Entertainment Enterprise promoters after the company reached a settlement with IndusInd Bank and paid off all dues. The CIRP against ZEEL has been closed, and both parties have been directed to pay the cost of the interim resolution professional. The settlement comes at a time when ZEEL is merging with Sony Pictures Networks India to create India’s biggest media empire.
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.
Also Read: IPRS withdraws insolvency plea against Zee Entertainment
