Zee entertainment agrees to pay $10 million IndusInd Bank dues

17 Mar 2023 , 09:39 AM

Zee Entertainment Enterprises Ltd (ZEEL) has reportedly agreed to settle its outstanding debts owed to IndusInd Bank Ltd, as it seeks to resolve its insolvency proceedings and move closer towards completing its merger with a unit of the Sony Group.

This merger is set to create a media powerhouse worth $10 billion.

According to the report, dues of around Rs83.70 crore could be settled as soon as Friday, and the Mumbai-based bank has agreed to withdraw its insolvency proceedings against the media company once the repayment is made.

According to Karan Taurani, an analyst at Elara Capital, the approval for the merger by the National Company Law Tribunal (NCLT) may not be granted until the ongoing legal cases are resolved or settled.

Recently, the companies in question reached a settlement with the Indian Performing Rights Society (IPRS), who subsequently withdrew their case from the NCLT. In January of this year, the IPRS had taken legal action against ZEEL, claiming a default of Rs211.41 crore.

The case involves a Rs89 crore default by Essel Group’s multisystem operator arm Siti Networks, which was claimed by IndusInd Bank and for which ZEEL was a guarantor.

Earlier, on February 24, the National Company Law Appellate Tribunal (NCLAT) stayed ZEEL’s insolvency proceedings.

At around 9.37 AM, Zee Entertainment stock was trading 3.73% lower at Rs199 on NSE. The scrip settled at Rs206.70 on Thursday.

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