ZEE, IndusInd Bank Settle Insolvency Dispute Paving Way For Sony Merger
IndusInd Bank on February 22 filed an insolvency plea against Zee with the NCLAT's Mumbai Bench. The move threatened the Zee-Sony merger deal as it was stopping all transactions, including asset transfers
Zee Entertainment Enterprises Ltd (ZEEL) and IndusInd Bank informed the National Company Law Appellate Tribunal (NCLAT) that they have entered into an agreement in the case pertaining to Zee and Sony merger. IndusInd will now withdraw its objections to Zee's merger scheme with Sony.
Zee in an exchange filing said, "We wish to update that the Ccompany and IndusInd Bank Limited have entered into a settlement agreement by which all disputes and claims have been settled between the Company and IndusInd Bank Limited.”
"The company and IndusInd Bank Limited have mutually entered into the settlement agreement on such agreed terms by which all disputes and claims have been settled between the company and IndusInd Bank Limited," Zee added.
According to a Moneycontrol report, IndusInd Bank lawyers told the NCLAT as per the settlement agreement, payment obligations have been undertaken, which will be paid by June 30 or within seven days of the Sony merger. Certain money has already been paid as per the agreement.
IndusInd Bank on February 22, filed an insolvency plea against ZEEL to the Mumbai Bench of the NCLAT. The move threatened the Zee-Sony merger deal by stopping all transactions, including asset transfers.
Also Read: ZEE Entertainment To Repay IndusInd Bank Dues, Close Merger Deal With Sony: Report
The issue stems from Siti Networks, a division of the Zee Group, defaulting by Rs 89 crore, which was claimed by the IndusInd Bank and for which ZEEL stood as a guarantee. The bank then submitted a petition for insolvency against Siti Networks.
In its ruling, the NCLT permitted IndusInd Bank to accept the business through the Corporate Insolvency Resolution Procedure (CIRP).
Zee filed an appeal with the NCLAT contesting this decision. The ruling directing the start of insolvency proceedings against the media and entertainment company was postponed by NCLAT in February. The appellate tribunal further issued notice to IndusInd Bank and said it will hear the case again on March 29.
ZEEL, in September 2021, entered into a non-binding term sheet with Sony Pictures Networks India Pvt Ltd to bring together their linear networks, digital assets, production operations, and programme libraries.
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