Zee Entertainment, IndusInd Bank reach settlement over dues; Zee shares jump
1 min read 29 Mar 2023, 12:57 PM ISTZee Entertainment Enterprises Ltd and IndusInd Bank Ltd told an Indian tribunal on Wednesday that they have settled a dispute over dues of the media company
PremiumZee Entertainment Enterprises Ltd (Zee) and IndusInd Bank Ltd have told National Company Law Appellate Tribunal (NCLAT) on Wednesday that they have settled a dispute over dues of the media company, reported Reuters. IndusInd Bank, on Wednesday, told the NCLT that it would also withdraw its objection to Zee Entertainment's merger with a local unit of Japan's Sony.
Zee shares jumped as much as 5% to a nearly one-week high of ₹219 apiece on the BSE in afternoon deals. The stock has declined more than 10% in 2023 so far (year-to-date).
Earlier this month, a Bloomberg report suggested that Zee Entertainment Enterprises has agreed to repay dues owed to IndusInd Bank Ltd as the company seeks to resolve insolvency proceedings initiated against it and inch closer to completing a merger with a Sony Group unit to create a $10 billion media giant.
Earlier on February 24, the National Company Law Appellate Tribunal (NCLAT) stayed the insolvency proceedings initiated against ZEEL. IndusInd Bank had approached the bankruptcy court, seeking to start insolvency proceedings against Zee, a move which could have threatened the merger by stopping all transactions, including asset transfers. NCLAT halted the insolvency proceedings against the media company last month.
On March 6, 2023, the company said it mutually settled disputes with the Indian Performing Rights Society (IPRS) and the insolvency petition filed against by the latter has been withdrawn before NCLAT. Earlier this January, IPRS moved the insolvency tribunal NCLT against ZEEL claiming a default of ₹211.41 crore.
