The bankruptcy court allowed Yes Bank’s petition to admit Essel Group company Zee Learn for the Corporate Insolvency Resolution Process (CIRP). The detailed order of the Mumbai bench of the National Company Law Tribunal (NCLT) was not available at press time Friday.
Last year in April, private sector lender Yes Bank had approached the tribunal after the BSE-listed company defaulted on dues of about ₹468 crore. Senior counsel Venkatesh Dhond appeared for the lender. Zee Learn was represented by senior advocate Krishnendu Datta and counsel Rohit Gupta.
The company is expected to challenge the tribunal’s order in the National Company Law Appellate Tribunal.
“Yes Bank has allegedly claimed that the total amount in default with respect to the financial facility is ₹468 crore. However, the company is compiling information to verify the facts claimed in the said petition,” Zee Learn said in a stock exchange filing on April 25 last year, when the lender had initiated its insolvency resolution application. On Friday, the company’s stock closed 1.01% up at ₹5.98 on the BSE.
In December 2022, Yes Bank had moved the NCLT to also initiate insolvency proceedings against Zee Learn subsidiary Digital Ventures. This case is still pending. Zee Learn had reported a consolidated annual revenue of Rs 282 crore and a loss of ₹2.82 crore for FY22, compared with Rs 313.4 crore revenue and a ₹8.79 crore loss the previous fiscal year.
Source: Economic Times