Mumbai: IndusInd Bank will withdraw its insolvency petition against Zee Entertainment Enterprises (Zee) after the media major agreed to settle all disputes with the lender. The development brings Zee a step closer to its proposed merger with Sony Pictures Networks India (SPNI), now known as Culver Max Entertainment.
Zee, however, didn’t reveal the contents of the settlement agreement with IndusInd but said it didn’t involve any penalty. IndusInd had initiated insolvency proceedings against Zee after its sister concern Siti Networks defaulted on a loan of Rs 93 crore (the amount includes interest component). Zee was the guarantor for the loan availed from IndusInd.
Zee, which has cash flows of Rs 700 crore, said on Wednesday the settlement has no material impact on its financial position.
On February 22, National Company Law Tribunal (Mumbai) admitted IndusInd’s insolvency plea against Zee and appointed Sanjeev Kumar Jalan of business advisory firm BDO as the resolution professional. However, the next day, Zee MD Punit Goenka, in his personal capacity, challenged the lower court’s order at the National Company Law Appellate Tribunal (NCLAT) in Delhi. NCLAT stayed the proceedings.
Zee has now agreed to settle the dues claimed by IndusInd, with the lender too agreeing to withdraw the insolvency petition against the media major.
However, debt-related petitions by IDBI Bank and Axis Finance, a subsidiary of Axis Bank, against Zee are pending before NCLT-Mumbai. IDBI has filed an insolvency application against Zee for a loan default of Rs 149 crore by Siti Networks. Like in the case of IndusInd, Zee was the guarantor for the loan availed by Siti from IDBI.
Axis Finance, on the other hand, has filed a loan recovery petition against Zee promoters, the Goenka family. The Goenkas owe Rs 146 crore to Axis Finance in connection with their other business ventures. In the past, Zee had said that it has no contractual privity with Axis Finance and is neither a party to any of the loan documents nor has it provided any assurance to Axis Finance for repayment. These petitions hinder Zee’s merger with Sony Pictures as the former hopes to complete the deal by April
Zee, however, didn’t reveal the contents of the settlement agreement with IndusInd but said it didn’t involve any penalty. IndusInd had initiated insolvency proceedings against Zee after its sister concern Siti Networks defaulted on a loan of Rs 93 crore (the amount includes interest component). Zee was the guarantor for the loan availed from IndusInd.
Zee, which has cash flows of Rs 700 crore, said on Wednesday the settlement has no material impact on its financial position.
On February 22, National Company Law Tribunal (Mumbai) admitted IndusInd’s insolvency plea against Zee and appointed Sanjeev Kumar Jalan of business advisory firm BDO as the resolution professional. However, the next day, Zee MD Punit Goenka, in his personal capacity, challenged the lower court’s order at the National Company Law Appellate Tribunal (NCLAT) in Delhi. NCLAT stayed the proceedings.
Zee has now agreed to settle the dues claimed by IndusInd, with the lender too agreeing to withdraw the insolvency petition against the media major.
However, debt-related petitions by IDBI Bank and Axis Finance, a subsidiary of Axis Bank, against Zee are pending before NCLT-Mumbai. IDBI has filed an insolvency application against Zee for a loan default of Rs 149 crore by Siti Networks. Like in the case of IndusInd, Zee was the guarantor for the loan availed by Siti from IDBI.
Axis Finance, on the other hand, has filed a loan recovery petition against Zee promoters, the Goenka family. The Goenkas owe Rs 146 crore to Axis Finance in connection with their other business ventures. In the past, Zee had said that it has no contractual privity with Axis Finance and is neither a party to any of the loan documents nor has it provided any assurance to Axis Finance for repayment. These petitions hinder Zee’s merger with Sony Pictures as the former hopes to complete the deal by April