Punit Goenka, CEO of Zee Entertainment Enterprises, has approached the National Company Law Appellate Tribunal seeking relief against the company's admission to insolvency.
The company statement read, “Mr Goenka is taking all the necessary steps as per law, to protect the interests of all stakeholders of Zee Entertainment Enterprises Ltd. (ZEE) and to achieve a timely completion of the proposed merger with Culver Max Entertainment.”
The statement further read, “Goenka firmly believes in the potential of the merger, to deliver immense value to all stakeholders. ZEE is a debt-free & financially strong company, and believes in value creation for its stakeholders.”
The Mumbai Bench of the National Company Law Tribunal (NCLT) Wednesday admitted private sector lender IndusInd Bank's insolvency plea against Zee Entertainment Enterprises Ltd (ZEEL).
This comes after the bank in its plea before the NCLT claimed a default of Rs 83.08 crore against the media and entertainment firm. Under Section 7 of IBC, a financial creditor may move NCLT for initiation of CIRP over default of Rs 1 crore and above.
According to the filing, ZEEL is a party to the Debt Service Reserve Account (DSRA) Guarantee Agreement entered into with IndusInd Bank for the term-loan facility advanced to another Essel Group firm, Siti Networks Ltd.
Siti Networks, formerly known as Wire and Wireless Ltd, is a multi-system operator promoted by media baron Subhash Chandra-led Essel Group.
On December 22 last year, ZEEL announced its merger with Sony Pictures Networks India Pvt Ltd (SPNI) after signing definitive agreements.
As per the deal, Sony would invest $1.575 billion and hold a 52.93% stake in the merged entity and Zee will have the remaining 47.07%