Zee Entertainment Enterprises Ltd (ZEEL) has announced that it has reached an agreement with IndusInd Bank Ltd to settle all disputes and claims between the two parties. The settlement puts an end to the insolvency proceedings that were initiated against ZEEL by IndusInd Bank before the National Company Law Tribunal (NCLT).
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In February last year, IndusInd Bank had filed a plea before the Mumbai bench of NCLT to initiate insolvency proceedings against ZEEL claiming that the media and entertainment firm had defaulted Rs 83.08 crore. The Mumbai bench of the NCLT had admitted the plea and appointed an interim resolution professional in the matter.
ZEEL’s Managing Director and Chief Executive, Puneet Goenka, had moved the appellate tribunal NCLAT challenging the order of the NCLT, and the NCLAT had stayed the proceedings. The matter pertained to a default in payments by Essel Group’s multisystem operator arm Siti Networks. ZEEL was a guarantor to the loans taken by Siti Networks.
The settlement with IndusInd Bank is a major relief for ZEEL, which is merging with rival Culver Max Entertainment Pvt Ltd to create India’s biggest media empire. The terms of the settlement have not been disclosed.
