Zee Entertainment Enterprises (Zee) has filed an application in the Mumbai bench of the National Company Law Tribunal (NCLT), seeking dismissal of IndusInd Bank’s insolvency petition against the company.
In a disclosure to stock exchanges, the homegrown entertainment company said it had on Monday filed an interlocutory application before the NCLT for dismissal of IndusInd Bank’s petition under Section 7 of the Insolvency and Bankruptcy Code, 2016.
Zee said it is seeking an “outright dismissal/rejection” of the petition at the threshold inter alia on the ground that “filing of the said company petition by IndusInd Bank is an act in breach/violation” of the orders dated February 25, 2021, and December 3, 2021, passed by the Delhi High Court in proceedings instituted by the company against the private bank.
Earlier this month, IndusInd Bank had moved the dedicated bankruptcy court under the Corporate Insolvency Resolution Process, claiming a default of over ₹83.08 crore. The matter is related to Siti Networks. Zee was a party to the Debt Service Reserve Account (DSRA) guarantee agreement entered with IndusInd Bank for the term loan facility advanced to Siti Networks, an Essel Group firm.
Zee said the issue of its alleged default under the DSRA Guarantee Agreement was sub-judice before the Delhi High Court. This comes at a time when Zee has entered into a pact with Sony Pictures for a merger and is also embroiled in a legal tussle with its largest shareholder Invesco at multiple judicial forums.
Source: Economic Times