Zee Entertainment's Insolvency: Punit Goenka Approaches NCLAT For Relief

Zee Entertainment Enterprises Ltd.'s CEO Punit Goenka today approached the National Company Law Appellate Tribunal seeking relief against the company's admission to insolvency.

The merger between Zee Entertainment and Sony Pictures Networks India Pvt. has come to a standstill after the National Company Law Tribunal admitted Zee to insolvency on Wednesday. A merger approval process in a company law court cannot proceed until an insolvency case is decided.

The court appointed Sanjay Kumar Jhalani as the interim resolution professional. The order comes on a petition filed by IndusInd Bank Ltd. after the company failed to fulfill its obligation under a Debt Service Reserve Account Agreement between the bank and Siti Networks Ltd., to which Zee was also a party. Siti Networks is part of the Essel Group.

Confirming the development, office of Punit Goenka told BQ Prime that he is "taking all the necessary steps as per law, to protect the interests of all stakeholders of Zee Entertainment Enterprises Ltd. and to achieve a timely completion of the proposed merger with Culver Max Entertainment Pvt. Ltd."

The statement said that "Goenka firmly believes in the potential of the merger, to deliver immense value to all stakeholders. Zee is a debt-free and financially strong company, and believes in value creation for its stakeholder".