Zee shares rally 8% on report of IndusInd Bank dues repayment

According to a Bloomberg report, the media firm 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.

The settling of dues of around ₹83.7 crore to the private lender could happen as early as Friday and IndusInd Bank has agreed to withdraw its insolvency proceedings against Zee once the repayment is done.

The National Company Law Appellate Tribunal (NCLAT) had earlier stayed the insolvency proceeding against ZEEL.

The NCLAT order is a major reprieve for ZEEL, which is merging with rival Culver Max Entertainment, formerly known as Sony Pictures Networks India.

Commenting on the development, Goenka had said: “We respect the decision taken by NCLAT and remain committed towards protecting the interests of all stakeholders. Our focus continues to be on the timely completion of the proposed merger (Culver Max Entertainment).

The Mumbai bench of the National Company Law Tribunal (NCLT) had admitted a plea filed by IndusInd Bank to initiate insolvency proceedings and had appointed Sanjeev Kumar Jalan as the interim resolution professional in the matter.

The matter pertains to a default of ₹89 crore by Essel Group’s multisystem operator arm Siti Networks claimed by IndusInd Bank, for which ZEEL was a guarantor.

IndusInd had approached NCLT claiming a financial debt of around ₹92 crore. However, this was challenged by ZEEL by filing another appeal against the maintainability of the petition by the bank.