Zee Entertainment stock up by more than 3% today

29 Mar 2023 , 02:13 AM

NCLAT has been notified by Zee Entertainment and IndusInd Bank that they have resolved their payment disagreement, thereby opening up the path for the Sony deal. Part of the debt that Zee owed to IndusInd bank has been paid back last week. The remaining debt will be paid by 30th June. 

IndusInd Bank filed a request with the bankruptcy court in February to commence insolvency proceedings against Zee. This action had the potential to put the merger in jeopardy by bringing all transactions, including asset transfers, to a halt.

In its petition, IndusInd Bank claimed an Rs 83.08 crore default against Subhash Chandra’s media and entertainment firm.

In December 2021, Sony and Zee agreed to merge their linear networks, production operations, digital assets, and programme libraries.

Last month, the National Company Law Appellate Tribunal halted the media company’s insolvency proceedings.

“We will continue to take all necessary steps to complete the merger in a timely manner, guided by legal advice, in the interest of our stakeholders, who have recognized the value and potential of the merger,’ ZEEL MD & CEO Punit Goenka had previously stated.

In a recent statement to NCLAT, a legal representative for Zee stated that although the Sony deal had obtained all the required authorizations, it would face delays due to the commencement of corporate insolvency proceedings.

Following this development, Zee Entertainment was trading 4.36% higher at Rs217.90, against the previous close of Rs208.80 on NSE. The counter touched an intraday high and low of Rs219.65 and Rs208.45 respectively.

For feedback and suggestions, write to us at [e-mail]