Zee Entertainment Enterprises has been sued by IDBI Bank in the NCLT for Rs. 149.60 crore in outstanding debt, and IDBI Bank initiating an insolvency action against the media company.
Nagpur: On Thursday, IDBI Bank issued an insolvency application against Zee Entertainment Enterprises for starting a corporate bankruptcy resolution procedure (CIRP) Reported by ET
According to a filing with the exchange by Zee, the lender has submitted the petition under Section 7, which permits a financial creditor to submit an application for starting CIRP against a corporate debtor before the adjudicating authority.
In a regulatory filing, the big media company stated that IDBI Bank had asserted a claim for Rs 149.60 crore, which ZEEL had rejected.
The bank’s alleged claim based on a debt service reserve arrangement that made between the bank and the business in exchange for the financial facility used by Siti Networks, a member of the Essel group.
IndusInd Bank submitted a comparable petition to the NCLT in February under Section 7. The entertainment company accused of defaulting by the bank by 83.08 crore. Zee Entertainment, however, requested that the tribunal dismiss the lenders’ case in an interlocutory application.
As a result, the Delhi High Court stated on September 13 that it had not stopped IndusInd Bank from taking Zee Entertainment to the insolvency court. This opened the door for the private lender to file for insolvency against the media company in order to recoup money it claims Siti Networks owes in debts.
Moreover, Siti Networks’ financing is at issue. Zee served as the surety for the loan obtained by Siti Networks from IndusInd Bank under the terms of the Debt Service Reserve Account Guarantee Agreement (DSRA) of August 29, 2018. IDBI Bank sued
One more lawsuit
Housing Development Finance Corporation Ltd. (HDFC) also filed an NCLT lawsuit in April against the top multi-system operator in the nation, SITI Networks Ltd., for an alleged default of Rs 296 crore. IDBI Bank sued
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