On Wednesday, Zee Entertainment Enterprises said it has agreed with IndusInd Bank to settle all disputes and claims between the two parties.
On February 24, the National Company Law Appellate Tribunal (NCLAT) stayed the insolvency proceedings that were initiated against Zee Entertainment Enterprises on a petition filed by IndusInd Bank before the National Company Law Tribunal (NCLT).
In a regulatory filing on Wednesday, ZEEL said, "... the company and IndusInd Bank have entered into a settlement agreement by which all disputes and claims have been settled between the company and IndusInd Bank".
In February last year, IndusInd Bank filed a plea before the Mumbai bench of NCLT to initiate insolvency proceedings against ZEEL claiming that the media and entertainment firm defaulted Rs 83.08 crore.
The Mumbai bench of the NCLT had admitted the plea and appointed Sanjeev Kumar Jalan as the interim resolution professional in the matter.
Later, ZEEL Managing Director and Chief Executive Puneet Goenka moved the appellate tribunal NCLAT challenging the order of NCLT.
NCLAT has stayed the proceedings.
The matter pertained to a default in payments by Essel Group's multisystem operator arm Siti Networks. ZEEL was a guarantor to the loans taken by Siti Networks. The settlement with IndusInd Bank will be a significant reprieve for ZEEL, merging with rival Culver Max Entertainment, formerly Sony Pictures Networks India, which will create India's biggest media empire.