Zee Entertainment stock climbs ~3% as NCLAT stays insolvency proceedings

24 Feb 2023 , 02:22 PM

In Friday’s intra-day trade on the BSE, shares of Zee Entertainment Enterprises (ZEEL) rose 3% to Rs204.6 after the National Company Law Appellate Tribunal (NCLAT) stayed insolvency proceedings against it.

A two-member NCLAT Bench granted ZEEL Managing Director and Chief Executive Officer Punit Goenka’s petition and stayed the order of the Mumbai bench of the National Company Law Tribunal (NCLT). 

On Wednesday, the NCLT granted IndusInd Bank’s insolvency petition against ZEEL and appointed Sanjeev Kumar Jalan as the resolution professional in the case.

The case involves a Rs 83 crore default by Siti Networks, an Essel Group subsidiary. When Siti failed to make the payment, IndusInd Bank invoked the guarantee.

The NCLAT issued notices to respondents on Friday, requesting that they respond within two weeks. On March 29, the appellate tribunal will hear Zee’s appeal against insolvency.

IndusInd Bank also filed a separate insolvency petition at the NCLT against Siti Networks. Mohit Mehra has been appointed as the resolution professional in this case by the tribunal.

At around 2.15 PM, Zee Entertainment Limited was trading at Rs198.20, marginally lower against the previous close of Rs198.65 on NSE. 

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