IndusInd Bank Limited has moved National Company Law Tribunal (NCLT), Mumbai Bench claiming default of Rs 83 crore by Zee Entertainment.
"An application has been filed against the Company, under Section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules 2016, by IndusInd Bank Limited, claiming to be a Financial Creditor, before the Hon'ble Nationa l Company Law Tribunal, Mumbai Bench for initiation of Corporate Insolvency Resolution Process against the Company, claiming a default of Rs.83,08,00,000," Zee said in a BSE filing.
Zee said that it is a party to the Debt Service Reserve Account Guarantee Agreement (DSRA Guarantee Agreement) entered
into with lnduslnd Bank Limited for the term loan facility advanced to Siti Networks Limited.
The issue of the company's alleged default under the DSRA Guarantee Agreement is sub-judice before the Delhi High Court.
Last month Axis Bank's subsidiary Axis Finance had threatened legal action against Subhash Chandra and Punit Goenka, MD and CEO, Zee Entertainment including opposing merger between Zee and Sony Pictures Network India (SPNI).
Board of directors of Zee Entertainment Enterprises Ltd (ZEEL) on December 22 last year had approved the merger with SPNI.
Sony will hold 50.86 percent stake in the merged entity, the Board had said.
In a letter to Zee, Axis Finance said that Chandra owes it outstanding dues worth Rs 146 crore.
Zee Entertainment is also at loggerheads with its largest shareholders Invesco and OFI Global China Fund.
The shareholders are seeking removal of Punit Goenka and appointment of six new independent directors.
The Zee-Invesco matter is currently being argued at the National Company Law Tribunal (NCLT), National Company Law Appellate Tribunal (NCLAT) and Bombay High Court.
At loggerheads with Zee, Invesco’s vote for a merger with Sony will be key for the media company as Invesco along with OFI Global China Fund together hold 17.88 percent in Zee.
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