Zee Entertainment, IndusInd Bank Settle Insolvency Dispute
The NCLAT was informed that IndusInd will take back its objections to Zee-Sony merger.
Zee Entertainment Enterprises Ltd. and IndusInd Bank Ltd. have agreed to settle the insolvency case, lawyers told the National Company Law Appellate Tribunal.
The two parties have reached a settlement agreement and a certain payment had already been made, the lawyers involved in the case informed the appellate tribunal on Wednesday. Zee said the rest of the payment will be made before June 30.
The court was also informed that IndusInd will take back its objections pending before the the National Company Law Tribunal to Zee's merger with the India unit of Sony Pictures.
In February, the National Company Law Tribunal had admitted Zee into insolvency on an application by IndusInd Bank for defaulting under a Debt Service Reserve Account Agreement between the bank and Siti Networks Ltd., to which Zee was also a party.
A day after being admitted into insolvency, Zee's Chief Executive Officer Punit Goenka approached NCLAT seeking relief against the company's admission to insolvency.
The company law tribunal is also hearing Zee's application on the proposed merger with Culver Max Entertainment Pvt.—an indirect, wholly owned subsidiary of Sony Group Corp.
