People familiar with the matter told Money Control that, the lender believes Zee Entertainment defaulted on the loan and sought the dues to be paid back in the suit. Adding they said, the bank urged the court to restrain the media and entertainment firm from disposing of assets to third parties.
Further, the news agency cited one of the persons saying, "Yes Bank's case is that Zee Entertainment has obligations as a guarantor for the foreign currency term loan of around $50 million under a letter of comfort issued in May 2016. This alleged liability has been disputed by Zee Enterprises."
The 2016 loan case is that Zee borrowed some $50M from Yes Bank for purchasing a stake in Veria International, for which Goenka gave loan guarantees.
As per the disclosure on stock exchanges, the Zee Entertainment promoters hold about 4.77% stake in the company. In a deleveraging exercise, the promoters earlier in August announced a stake sale of 11% to the US-based Invesco Oppenheimer Developing Markets Fund for an amount of Rs4,224cr.
Reportedly, the bank has asked the court to prevent Zee from selling further stake and even sought a ban on Goenka from leaving India.
At present, the parent Zee's parent Essel Group has a debt of approximately Rs8,000cr from Yes Bank.
On Sensex, the Yes Bank stock was trading at Rs25.20 per piece down by 1.56% at around 10.29 am. On the other hand, the Zee Entertainment stock was trading at Rs172.50 per piece up by 0.82%.
However, the Zee Media stock plunged by 2.47% trading at Rs6.70 per piece, and that of Zee Learn stock were performing at Rs15.75 per piece below 2.72% at the same time.