In a bid to complete its merger with Sony Pictures, Zee Entertainment is looking to settle disputes and dues that is coming in the way of the deal. This includes a dispute with IndusInd bank where Zee Entertainment Enterprises owes nearly ₹83 crore to the bank. The bank has dragged the company into insolvency to recover the dues.
As per sources, Zee does not want to jeopardize the merger with Sony on the back of the IndusInd dispute.
With the payment of dues, the Mumbai-based bank will likely withdraw its insolvency proceedings against the media company greenlighting the merger.
Settlement with IPRS
Zee also informed the exchanges on Thursday that the Indian Performing Rights Society (IPRS), which is a non-profit society comprising authors, composers and music publishers, has also withdrawn its insolvency proceedings against the company. Zee and IPRS had reached a settlement earlier this month on the issue of royalty payments worth ₹211.41 crore payable by Zee.
“Accordingly, on March 9, 2023, in view of the settlement between the Company and IPRS, the insolvency petition [CP(IB) No. 1279 (MB) of 2022] and the objections [CA No. 17 of 2023, CA No. 52 of 2023, and CA No. 56 of 2023] filed by IPRS to the company scheme petition were disposed of as withdrawn, by the Hon’ble NCLT. The final disposal orders dated March 9, 2023 were made available on March 16, 2023,” Zee informed the exchanges.
NCLT also disposed of objection applications submitted by IPRS.
As the Zee-Sony merger neared completion, Zee’s creditors such as IndusInd, Axis Bank and IPRS initiated insolvency proceedings against Zee over non-payment of dues.
Zee’s stocks took a nose-dive as its merger with Sony was in jeopardy.
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Published on March 16, 2023
