Two separate applications have been filed by IndusInd bank against Zee, based on which the NCLT has admitted two of Essel Group’s listed companies for insolvency proceedings
Zee Entertainment Enterprises Ltd. (ZEEL) is reportedly facing a new round of problems as the Mumbai bench of National Company Law Tribunal (NCLT) has admitted an insolvency plea. As per reports, NCLT has admitted these insolvency pleas against the company as they have been filed by IndusInd Bank.
According to a report in the Economic Times, two separate applications have been filed by IndusInd bank against Zee, based on which the NCLT has admitted two of Essel Group’s listed companies for insolvency proceedings. These companies are ZEEL and Siti Network Ltd.
The report goes on to add that the Mumbai bench has appointed Sanjeev Kumar Jalan, a partner in professional services firm BDO and Mohit Mehra as resolution professionals for Zee Entertainment and Siti Network, respectively. In addition to this, ZEEL counsel’s oral request to stay the order for two weeks was also reportedly rejected.
At this point, since the whole ZEE issue has taken a dramatic turn, as per experts, some hurdles may be coming in ZEEL’s merger with Sony. In December last year, ZEE had announced this merger after signing several definitive agreements.
As per media reports, the insolvency plea against ZEE has been filed by IndusInd Bank under the Section 7 of the Insolvency and Bankruptcy Code (IBC). In the plea, the bank has reportedly claimed a default of Rs 83.08 crore against ZEE.