IDBI Bank files insolvency plea against Zee Entertainment to recover Rs 149.60 crore

IDBI Bank has moved the National Company Law Tribunal (NCLT) against Zee Entertainment Enterprises Ltd (ZEEL) seeking an insolvency proceeding against the media firm to recover dues of Rs 149.60 crore.

IDBI Bank has claimed an amount of Rs 149.60 crore, which has been disputed by ZEEL, said a regulatory update from the media major.

IDBI Bank has filed an application under section 7 of the Insolvency and Bankruptcy Code, 2016, claiming to be a financial creditor, before NCLT for initiation of Corporate Insolvency Resolution Process against the company, it added.

"The bank's purported claim arises under a Debt Service Reserve Agreement entered into by the bank and the company for the financial facility availed by Siti Networks Ltd," it said.

ZEEL is "vehemently disputing the bank's claim in other proceedings filed by the bank against the company for recovery of its alleged dues," it added further.

SITI Networks, formerly known as SITI Cable Network, is a part of the Essel Group.

It provides its cable services at 580 locations and adjoining areas, reaching out to over 11.3 million digital customers In April this year, Housing Development Finance Corporation Ltd (HDFC) moved NCLT against the country's leading multi-system operator SITI Networks Ltd for alleged default of Rs 296 crore.