IndusInd Bank will withdraw its insolvency petition against Zee Entertainment Enterprises Ltd. after the media major agreed to settle all disputes with the lending bank. The development brings Zee a step closer to its proposed merger with Sony Pictures Networks India, now known as Culver Max Entertainment.
Without revealing the terms of settlement with IndusInd Bank, Zee made it clear that it did not involve any penalty. IndusInd had initiated insolvency proceedings against Zee after its sister concern, Siti Networks, defaulted on a loan of Rs. 93 crore (including interest) for which Zee was the guarantor.
Zee, which has cash flows of Rs. 700 crore, said that the settlement had no impact on its financial position.
On February 22, 2023, the National Company Law Tribunal (NCLT), Bombay admitted IndusInd’s insolvency plea against Zee and appointed Sanjeev Kumar Jalan of business advisory firm BDO as the resolution professional. However, Zee managing director Punit Goenka challenged the lower court’s order in his personal capacity the very next day in the National Company Law Appellate Tribunal (NCLAT) in Delhi. The NCLAT recently stayed the proceedings.