Share of Zee Entertainment (ZEEL) had hit its earlier 52-week low on June 20, 2022 at Rs 200.50. With in the present day’s fall, the inventory is now down 43 per cent from its 52-week excessive of Rs 308.65 that was touched on Apri 4, 2022.
The Mumbai bench of the National Company Law Tribunal (NCLT) on Wednesday admitted an insolvency petition media firm Zee Entertainment Enterprises Ltd (ZEE) filed by its monetary creditor IndusInd Bank, beneath Section 7 of the Insolvency and Bankruptcy Code (IBC).
IndusInd Bank in its plea has claimed a default of ₹83.08 crore towards the media and leisure agency promoted by Subhash Chandra. According to stories, the courtroom has appointed Sanjay Kumar Jhalani because the interim decision skilled.
The chapter courtroom admitted a petition filed earlier by IndusInd Bank, which had moved the courtroom looking for a fee of greater than Rs 83 crore from ZEEL. This got here after ZEEL didn’t fulfil obligations beneath a Debt Service Reserve (DSR) account settlement.
Under the phrases of the DSR account settlement, which was signed between the lender and Siti Networks (one other Essel Group agency), ZEEL was additionally a celebration to it. ZEEL had assured to take care of an quantity equal to 1 quarter’s curiosity and one quarter’s principal within the account for servicing the money owed however failed to take action.
Siti Networks, previously Wire and Wireless, is a multi-system operator promoted by Essel Group.
The courtroom has additionally admitted IndusInd’s insolvency petition towards Siti Networks and appointed an interim decision skilled.
According to IndusInd Bank’s petition, Siti had failed to take care of the account since September 2019, with the dues amounting to Rs 89 crore. It had additionally acknowledged that ZEEL, being the guarantor, must be additionally made a celebration within the case.
ZEEL had acknowledged that IndusInd Bank’s petition was a “breach or violation” of earlier orders handed by the Delhi High Court. In February 2022, the corporate had moved an utility earlier than the NCLT requesting the dismissal of IndusInd Bank’s plea.
In January, Indian Performing Right Society (IPRS), an operational creditor to ZEEL, had filed an insolvency petition earlier than the NCLT Mumbai bench towards the media agency claiming Rs 211.42 crore of debt. On its half, ZEEL had mentioned the creditor is claiming debt and default in direction of royalty payable for utilisation of “literary and musical works”.
In the third quarter, the media firm reported a 92 p.c year-on-year decline in consolidated revenue at Rs 24.31 crore, dented by weak working efficiency, decrease topline and distinctive loss (Rs 168.97 crore).
Consolidated income from operations at Rs 2,111.2 crore fell by 0.07 p.c in comparison with year-ago interval hit by decrease commercial income, down 15.6 p.c on-year.
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