NCLT adjourns ZEE’s lenders’ case against proposed merger to March 9

The case includes petitions filed by IndusInd Bank, Axis Finance Ltd, IDBI Bank and Indian Performing Rights Society (IPRS).

ZEE’s lawyers said the applications filed to oppose the merger were using tactics to delay the completion of the merger process.

He noted that key regulatory and shareholder approvals have already been received; This is the reason why these applications cannot prevent merging. He said the plan has already received approval from 99.97% shareholders and all secured creditors, apart from SEBI, stock exchanges, CCI, regional directors and official liquidators.

Last year, IndusInd Bank had first approached the dedicated bankruptcy court against ZEE for its alleged default of Rs. 89 crores. Later, Axis Finance, a subsidiary of private sector lender Axis Bank, had earlier moved the Bombay High Court against Essel Group promoter Subhash Chandra and his sons Punit and Amit Goenka, seeking recovery of Rs. 61.64 crores, and subsequently filed an application in NCLT.

In December, another financial creditor, IDBI Bank filed an insolvency application claiming default of Rs. 149 crores. The bank’s alleged claim arises under a debt service reserve agreement entered into by the bank and the company for a financial facility availed by Citi Networks, a unit of Essel Group.

In January, IPRS filed a petition under the Corporate Insolvency Resolution Process (CIRP) in the tribunal, seeking higher payments. 211.41 cr.

Earlier in December 2021, Zee and Sony had signed a definitive agreement to merge operations. As part of the proposed merger, the Japanese multinational will hold 50.86% stake in the merged entity, while ZEE’s promoters will hold 3.99%. Existing public shareholders in ZEE will hold the remaining 45.15% in the merged company.