Home / Industry / Banking /  Yes Bank files IBC plea against Zee Learn subsidiary
Back

MUMBAI : Yes Bank has moved the National Company Law Tribunal (NCLT) to initiate corporate insolvency resolution process (CIRP) against Digital Ventures Pvt. Ltd, a wholly-owned unit of Zee Learn Ltd.

The private lender has filed the petition under Section 7 of the Insolvency and Bankruptcy Code, which allows a financial creditor to file an application for initiating the process. The NCLT has issued a notice to Digital Ventures.

Spokespeople at Yes Bank and Zee declined to comment.

Digital Ventures is engaged in providing digital solutions including maintaining websites of companies and creating multimedia presentations for other firms.

Zee Learn provides education across India through its various ventures. It operates through various schools and educational institutions in India.

“Zee Group has been under financial turmoil since a long time. Last year, they settled their debts and this year, they again failed to honour their loan commitments. They are also trying to sell their stakes in the company to deal with financial crisis. It all started with wrong bets in different verticals and those mistakes cost them their fortune which they acknowledged and still regret taking those decisions and which mounted their debt and still their crisis is far from over. In addition to bearing the brunt of lenders, they are also facing regulatory concerns," said Sonam Chandwani, managing partner, KS Legal and Associates.

In April, a similar insolvency application was filed by the private lender before the NCLT to initiate the insolvency process against Zee Learn. The lender had claimed that the total amount in default was 468 crore. The company said at the time that it is in the process of verifying the bank’s claim.

Since 2003, Zee Learn has run Asia’s largest pre-school chain Kidzee comprising about 1,900 schools in 750 cities across India and neighbouring countries, as well as the Mount Litera Zee School chain of KG to class XII schools comprising over 120 schools across 110 locations.

HDFC Ltd and Rattan India Finance hold 4.85% and 6.42%, respectively, in the company.

ABOUT THE AUTHOR

Priyanka Gawande

Priyanka Gawande is a senior legal correspondent at Mint. She has worked as legal reporter for four years with both television and digital mediums. Based in Mumbai, she reports on disputes across sectors including banking, corporates and finance. This also includes insolvency and bankruptcy cases and intellectual property rights (IPR) litigation. Her focus also comprises tracking capital markets and disputes relating to securities law. Previously, Priyanka worked with Informist Media for 2.5 years covering major insolvency and bankruptcy cases and corporate developments. She started her career in journalism with Business Television India (BTVi) where she reported on primary markets, banking, finance and insurance companies.
Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout