Big relief to Zee: NCLAT stays insolvency proceedings against the media firm

Appreciating the NCLAT order, Goenka said, “Stay committed to protecting the interests of all stakeholders. We are focused on timely completion of the proposed merger.”

The tribunal has issued notice to private sector lender IndusInd Bank on a petition filed by Goenka. NCLAT The next hearing of the case will be on March 27.

Get all the latest updates here:

Senior advocate Mukul Rohatgi is representing GoenkaArgued for the company before NCLAT.

Rohatgi says debt recovery should be done through Debt Recovery Tribunal and not through Insolvency Code

Goenka told the NCLAT that Zee had given a specific guarantee not for Citi’s loan, but only to maintain the shortfall in one installment of the interest payment account.

Goenka told the NCLAT that no plea was heard by the National Company Law Tribunal (NCLT) on initiation of insolvency proceedings against Zee.

– Entire amount of Citi’s debt not recoverable from Zee, Goenkas to NCLAT

– Demand on Zee Entertainment Enterprises can be raised only if the city fails to keep up with one tranche of interest payment, Punit Goenka tells NCLAT

– Want Original loan of Rs 83 crore given to Citi, says Goenka, Zee never issued guarantee for the loan

Meanwhile, IndusInd Bank tells NCLAT that Zee had argued against initiation of insolvency proceedings in NCLT

The lender informed the NCLAT that the Delhi High Court held that every default by Zee City would cover the committee, the guarantee would remain operative and binding on Zee.

Zee knew that insolvency proceedings were pending at NCLT and took a chance by not responding to insolvency proceedings,’ IndusInd Bank tells NCLAT

Earlier on Thursday, Goenka challenged the bankruptcy proceedings against the company by the bankruptcy court over loan defaults from IndusInd Bank Ltd, and is still hopeful of timely completion of the merger with the local unit of Japan’s Sony Group Corp.

The NCLT has admitted the petition at a time when ZEEL is in advanced stages of merger with Sony in one of the biggest deals in the media and entertainment sector.

Case related to default 89 crore by Zee Group’s multisystem operator arm Siti Networks was claimed by private sector lender IndusInd Bank, for which ZEEL was a guarantor.

IndusInd Bank has also filed a separate insolvency petition against Citi Networks in the NCLT. NCLT has appointed Mohit Mehra as resolution professional in the matter.

shares of Zee Entertainment Enterprises Today, their downtrend continues to extend after insolvency proceedings were initiated against the company due to loan defaults.

The stock fell nearly 5.4% in early trading Friday after closing down nearly 4% in the previous session.

Shares of the company, which have fallen nearly 20% so far this year, are on track for their fifth straight session of losses.

Meanwhile, the National Stock Exchange on Thursday banned derivatives trading on the stock of Zee with effect from April 28.