The National Company Law Tribunal (NCLT) has allowed the Indian Performing Right Society Ltd (IPRS), an operational creditor of Zee Entertainment Enterprises, to withdraw its insolvency petition. The move will bring the company a step closer to its merger with a Sony Group entity for creating a $10-billion media platform.
“In view of the settlement agreement entered between the parties wherein the corporate debtor ( ZEE) has agreed to pay the due amount payable to the operational creditor, in this case IPRS, permission is granted and the company petition is disposed of as withdrawn,” said NCLT’s Mumbai bench headed by Justice H.V. Subba Rao.
In January, IPRS moved the NCLT against ZEE claiming a default of ₹211.41 crore.
The media firm on Thursday informed the exchanges that Zee and IPRS have amicably settled all the disputes and claims between the two.
Two more insolvency cases are pending against ZEE, one by IndusInd Bank Ltd and the other by Axis Finance Ltd.
On 22 February, the NCLT admitted an insolvency petition against ZEE by IndusInd under Section 7 of the Insolvency and Bankruptcy Code (IBC). However, the National Company Law Appellate Tribunal ( NCLAT) granted relief against the NCLT order to the media company led by managing director and chief executive Puneet Goenka.
Bloomberg reported that ZEE is also reaching a settlement agreement with IndusInd Bank and the lender may withdraw its petition, but this could not be independently verified till press time.
ZEE entered into a definitive agreement with Culver Max Entertainment (formerly Sony Pictures Networks India) to merge the operations of the two firms. The settlement of the cases is expected to speed up the merger.
Zee has agreed to repay the dues of about ₹83. 7crore owed to IndusInd Bank, as it seeks to resolve insolvency proceedings initiated against it by the Mumbai-based bank, Bloomberg reported.
The settlement could happen as early as Friday and the bank has agreed to withdraw its insolvency proceedings against the media company, it added.