BREAKING: NCLAT has stayed the NCLT order that favoured insolvency proceedings against Zee Entertainment Enterprises Ltd. The plea in NCLT was filed by IndusInd Bank
BREAKING: In a major relief to Zee Entertainment Enterprises Ltd. (ZEEL), the National Company Law Appellate Tribunal (NCLAT) has favoured the MD and CEO Punit Goenka's stance and stayed Zee's insolvency proceedings. In response to the National Company Law Tribunal (NCLT's) insolvency proceedings, the NCLAT has pronounced its order and stayed the same.
For those not familiar with the finer nuances of the case, the NCLT had admitted an IndusInd Bank plea for insolvency proceedings after a plea was filed by the bank over a default of Rs 83 crore. In response to this move, Zee Entertainment's MD and CEO Punit Goenka then moved the NCLAT, challenging the NCLT move of insolvency proceedings of ZEEL.
Since the Zee Entertainment and Sony were on the verge of completing their merger, this insolvency news came as a shock to many. As per many experts, the Zee Entertainment's insolvency proceedings were also expected to hamper the merger in some ways. However, neither of the companies ever said anything on this in the public domain.
On Thursday, shares of Zee Entertainment Enterprises Ltd., also fell by almost 4 per cent after updates on insolvency proceedings became public.
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