IndusInd files bankruptcy proceedings against Zee Entertainment
Private sector lender, IndusInd Bank has approached the Company Law Tribunal and filed an insolvency petition against Zee Entertainment over default of over Rs 83 crore.
FollowPrivate sector lender, IndusInd Bank has approached the Company Law Tribunal and filed an insolvency petition against Zee Entertainment over default of over Rs 83 crore.Â
In a BSE filing, Zee Entertainment said, "An application has been filed against the Company, under Section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules 2016, by IndusInd Bank Limited, claiming to be a Financial Creditor, before the Hon'ble National Company Law Tribunal, Mumbai Bench for initiation of Corporate Insolvency Resolution Process against the Company, claiming a default of Rs 83,08,00,000."
The company has said that it is a party to the Debt Service Reserve Account Guarantee Agreement entered into with IndusInd Bank Limited for the term loan facility advanced to Siti Networks Limited.
On February 4, the company’s shares dipped 3.08 per cent at Rs 278.65 apiece.
Zee Entertainment, in a statement, said that the corporate insolvency resolution process application is in breach of the December 3 order passed in the company's appeal. Zee Entertainment further said it will take appropriate legal measures against IndusInd Bank's petition.
