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Zee Entertainment and IndusInd Bank resolve dispute over dues: Report
The media company's insolvency proceedings were suspended last month by the National Company Law Appellate Tribunal
Zee Entertainment and IndusInd Bank have notified NCLAT that they have resolved their payment dispute, clearing the door for the Sony transaction.
On Wednesday, IndusInd Bank informed the NCLT that it will likewise drop its opposition to Zee Entertainment's merger with a regional Sony subsidiary.
"All disputes and claims have been settled between the Company and IndusInd Bank Limited," Zee Entertainment stated in a stock exchange filing. "The Company and IndusInd Bank Limited have mutually entered into the settlement agreement on such agreed terms.
Further, it stated that no fine was paid and that its financial situation would not be materially affected.
IndusInd Bank sought to initiate insolvency procedures against Zee in February. This step may have jeopardised the merger by halting all operations, including asset transfers.
In their complaint, IndusInd Bank accused the Subhash Chandra-backed media and entertainment company of defaulting by Rs 83.08 crore.
Sony and Zee agreed to merge their linear networks, digital assets, production businesses, and programme libraries in December 2021.
The media company's insolvency proceedings were suspended last month by the National Company Law Appellate Tribunal, an appeals court.