Zee Group settles Rs 6,500 crore Yes Bank debt; bank takes 75% haircut
Zee Group and Yes Bank have reached a one-time settlement (OTS) for the outstanding debt of ₹6,500 crore, according to media reports. As per media reports, Zee will pay ₹1,500 crore to Yes Bank under the terms of the OTS, leading to a 75% haircut for the latter. This means that Zee will only have to pay a quarter of the original debt amount.
The OTS is a significant development for Zee Group, as it will allow the company to regain ownership of its stake in assets, including Dish TV and Zee Learn. It will also help to clear the way for the ongoing ZEE-Sony deal.
The OTS is not expected to have a significant impact on Yes Bank’s financials, as the bank had already sold down the debt to JC Flowers Yes Bank Asset Reconstruction Company (ARC) at a discounted value of Rs 11,183 crore.
Zee Learn had earlier disclosed to the stock exchanges that it had signed a settlement agreement with JC Flowers ARC on August 7, 2023. The settlement agreement relates to loans borrowed by certain trusts and entities of Zee Learn.
Dish TV, which was run by Chandra’s brother Jawahar Goel, was also part of the OTS. Yes Bank had invoked the pledged shares of Dish TV and ousted Goel.
Essel Group has declined to comment on the OTS.
Zee group had earlier entered into a settlement agreement with IndusInd bank under which all disputes and claims have been settled between the Company and the bank.
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.
Meanwhile, Yes Bank has clarified that after the sale of the of identified loan portfolio to JC Flower ARC in December 2022, Bank has no further role in settlements/ negotiations being undertaken by JC Flower ARC. It further said that its association with the JC Flower ARC is limited only to the extent of its current shareholding of 9.9%.
“In the usual course of business, bank may receive redemptions in the Security Receipts portfolio pursuant to the settlements/resolutions undertaken by JC Flowers ARC. In this regard, we would like to clarify that, subsequent to the disclosure / event disclosed by the Bank on August 20, 2023, there are no further redemptions (exceeding materiality thresholds) which are required to be reported pursuant to the provisions of Listing Regulations, as amended,” Yes Bank said in an exchange filing.
Also Read: Zee Entertainment settles insolvency dispute with IndusInd Bank
