NCLT Allows IPRS To Withdraw Insolvency Petition Against Zee

India’s National Company Law Tribunal (NCLT) allowed Indian Performing Right Society Ltd. (IPRS) to withdraw its insolvency petition against Zee Entertainment Enterprises Ltd.

The Mumbai bench of the NCLT disposed of the insolvency petition and the objections filed by IPRS to the company’s scheme petition as withdrawn in view of the settlement between the parties, Zee said in a stock exchange announcement.

The final disposal orders dated 9 March were made available today, it added.

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.”

The body, which looks after copyrights for authors, composers and publishers of music, filed the petition before the Mumbai bench of the NCLT under Section 9 of the Insolvency and Bankruptcy Code 2016.

(Note: $1 = 82.6221 Indian rupees)

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