Zee And IndusInd Bank Dispute Ends As Both Parties Reach A Settlement

On Wednesday, March 29, Zee Entertainment Enterprises Ltd (Zee) and IndusInd Bank Ltd informed the National Company Law Appellate Tribunal (NCLAT) that their disagreement on the media company’s debt had been resolved.

The Settlement

After announcing their settlement, IndusInd Bank informed the NCLT that it would likewise drop its opposition to Zee Entertainment’s merger with a regional Sony subsidiary.

As per the Mint, in afternoon trading, Zee shares increased by as much as 5% to nearly a one-week high of 219 rupees per share on the BSE. Thus far, in 2023, the stock has decreased by more than 10%.

The Dispute

IndusInd Bank sought to initiate insolvency procedures against Zee in February. IndusInd Bank accused the Subhash Chandra-backed media and entertainment company of defaulting by Rs 83.08 crore in their complaint.

Punit Goenka, the CEO of Zee’s, decided to move the NCLAT one day after the firm was admitted to insolvency to seek relief from the decision. 

Last month, the National Company Law Appellate Tribunal suspended the media company’s insolvency procedures. 

Sony and Zee agreed to integrate their linear networks, digital assets, production businesses, and program libraries in December 2021. The Sony acquisition had all the required clearances, but the start of corporate insolvency procedures would force it to be postponed, a lawyer for Zee informed NCLAT last month.

IPRS filed an insolvency petition with the NCLT against ZEEL earlier this month, citing a default of 211.41 crores. On March 6, 2023, the media firm announced that it and the Indian Performing Rights Society (IPRS) had mutually resolved their differences and that the IPRS’s NCLAT insolvency petition had been dropped.


About Pragna Chakraborty 233 Articles
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