Zee Entertainment And IPRS Settle Dispute, Withdraw Insolvency Petition

This January, IPRS moved the insolvency tribunal NCLT against ZEEL claiming a default of Rs 211.41 crore

On February 22, the Mumbai bench of the NCLT had admitted a plea filed by IndusInd Bank to initiate insolvency proceedings against ZEEL. ( Image Source :Getty )

ZEE Entertainment Enterprises Ltd (ZEEL) has said it has 'mutually' settled disputes with the Indian Performing Rights Society (IPRS) and the insolvency petition filed against by the latter has been withdrawn before the National Company Law Appellate Tribunal (NCLAT), the PTI reported.

According to a regulatory filing by ZEEL, "The Company and IPRS have mutually entered into the settlement agreement today on such agreed terms by which all disputes and claims have been settled between the Company and IPRS and accordingly IPRS has agreed to withdraw the aforesaid insolvency petition filed by them."

Though ZEEL has not shared the terms and conditions of settlement, however, it said that is entered into the settlement agreement. "There is no penalty paid and no material impact on the financial position of the Company," it said.

This January, IPRS moved the insolvency tribunal NCLT against ZEEL claiming a default of Rs 211.41 crore. IPRS, which is a non-profit society comprising authors, composers and music publishers, filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC) 2016, as an operational creditor claiming dues towards royalty payable for utilisation of "literary and musical works".

Earlier on February 24, the NCLAT stayed the insolvency proceedings initiated against ZEEL. Admitting a petition filed by ZEEL Managing Director and Chief Executive Officer Punit Goenka, the appellate tribunal issued notices to private sector lender IndusInd Bank and the interim resolution professional directing them to file a reply in two weeks.

On February 22, the Mumbai bench of the National Company Law Tribunal (NCLT) had admitted a plea filed by IndusInd Bank to initiate insolvency proceedings against ZEEL. It had also appointed an interim resolution professional after suspending the board.

The NCLAT order was a major reprieve for ZEEL, which is merging with rival Culver Max Entertainment, formerly known as Sony Pictures Networks India, creating India's biggest media empire. The company has received necessary approvals from shareholders, creditors, bourses, and CCI and a final go-ahead from the NCLT is awaited.