NCLT has dismissed IDBI bank’s insolvency petition against Zee Entertainment Enterprises Limited. This news is of great relief to the company as the case had put Subhash Chandra led Zee Entertainment in a tense situation for a long time.
IDBI bank filed a case in the Mumbai branch of NCLT in December 2022 against the firm for default of 149 crores. The lawyers argued that under Section 10A of the Insolvency & Bankruptcy Code, 2016, the default was still during suspension period so it bars the admission of any Insolvency period.
There were two other creditors: IndusInd Bank and IPRS or Indian Performing Right Society. These two creditors settled their disputes and had also withdrew their pleas. And the media firm Zee has also offered IDBI bank to repay 149 crores of the loan.
ZEEL is going to merge with another television channel Sony soon. Zee and Sony Pictures Network India (SPN) signed a deal on 22nd December 2021 which will make the merger into one 10 Billion Dollar media giant.
This merging will be a huge event in the Indian Entertainment industry and after being cleared of all charges of Insolvency, Zee will now focus more on the Entertainment business, in which it is a giant. Zee MD and CEO Punit Goenka will lead the merger company and there will be a total of nine board members. Five will be selected from Sony and three will be independent.