Zee Entertainment Enterprises Ltd. today clarified it has been exploring several strategies, including settlement of IndusInd Bank’s dues.
The media and entertainment company’s response came after the stock exchanges sought clarification from Zee following media report that the company was ready to repay $10 million to its lender IndusInd Bank to seal its merger deal with Sony’s India unit.
“There is no clarity at this stage as to which resolution or strategy the company will finally pursue, much less the timing of any such strategy,” Zee said in in a stock exchange announcement. “Accordingly, we believe that the news report is speculative in nature.”
India’s National Company Law Tribunal (NCLT) on 22 February had admitted an insolvency resolution petition against Zee following a petition by its financial creditor IndusInd Bank.
Zee, however, later received an interim relief from the National Company Law Appellate Tribunal (NCLAT) on the bankruptcy court’s insolvency order following an application filed by the company’s Managing Director & Chief Executive Officer Punit Goenka.
The NCLAT, which stayed insolvency order against Zee and sought response from the parties, is scheduled to hear the matter on 29 March.
Meanwhile, Zee has received relief in another insolvency process after the NCLT allowed Indian Performing Right Society Ltd. (IPRS) to withdraw its bankruptcy petition against the company. The development came after the parties reached a settlement.
Zee, which is looking to close its merger with Sony’s India unit, earlier this month mutually settled all disputes and claims with its operational creditor IPRS, a representative body of owners of music. IPRS agreed to withdraw its insolvency petition against the company.
IPRS had filed a petition to initiate insolvency resolution against Zee, claiming a debt and default of over 211.42 crore rupees ($26 million) toward royalty payable for utilization of “literary and musical works.”
(Note: $1 = 82.6221 Indian rupees)
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