Zee Entertainment has informed National Company Law Appellate Tribunal (NCLAT) about settling the dispute with IndusInd Bank and accordingly, IndusInd Bank’s plea, objecting the merger between Sony and Zee Entertainment, has been withdrawn.

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The first tranche of the total dues that indusInd Bank, had claimed, has been paid early Friday. The remaining dues are to be paid within seven days of the merger or latest by June 30. As per IndusInd Bank’s plea, Zee had to make payment of nearly Rs 84 crore in the case related to Siti Networks.

The Mumbai Bench of the National Company Law Tribunal (NCLT) on February 22 had admitted private sector lender IndusInd Bank's insolvency plea against Zee Entertainment Enterprises Ltd (ZEEL), after the bank in its plea before the NCLT claimed a default of Rs 83.08 crore against the media and entertainment firm.

Zee Entertainment was a party to the Debt Service Reserve Account (DSRA) Guarantee Agreement entered into with IndusInd Bank for the term-loan facility advanced to another Essel Group firm, Siti Networks Ltd.

MD & CEO Punit Goenka had moved National Company Law Appellate Tribunal (NCLAT) to challenge an National Company Law Appellate Tribunal (NCLT) order directing intimation of inolvency proceedings against the media firm.

Zee also said in the NCLAT that in the NCLT hearing, it was not allowed a hearing to defend its position; hence, it appealed to set aside the order on initiation of insolvency. During the hearing, Zee had told NCLAT that all necessary approvals regarding the Sony merger have been received and the insolvency proceedings could stall the deal.

Earlier this month, Zee had also settled all disputes and claims with Indian Performing Right Society Limited (IPRS). Accordingly, IPRS had withdrawn its petition at NCLT. The media and entertainment company, Zee and IPRS had entered into an agreement to settle all disputes and claims. IPRS and Zee were in a dispute over ₹211 crore dues that the latter was supposed to pay.

Shares of Zee Entertainment are trading 1.9 percent higher at Rs 212.65.

(Edited by : Hormaz Fatakia)

First Published:Mar 29, 2023 12:54 PM IST