IDBI Bank files insolvency plea against Zee Entertainment

MUMBAI: Private sector lender IDBI Bank has moved the National Company Law Tribunal (NCLT) against Subhash Chandra promoted Zee Entertainment
Enterprises Ltd to recover dues of Rs 149.60 crore.

The media house in a regulatory filing to the exchanges said that IDBI Bank, claiming to be a financial creditor, has filed the petition before the Mumbai bench of the NCLT. According to the regulatory filing by Zee Entertainment, IDBI Bank has claimed an amount of Rs 149.6 crore, which has been disputed by ZEEL.

“We hereby inform you that an application has been filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 read with rule 4 of the Insolvency and Bankruptcy Rules 2016 by IDBI Bank Ltd claiming to be a financial creditor before the Hon’ble National Company Law Tribunal, Mumbai bench for initiation of Corporate Insolvency Resolution Process against the company,” said the notice to the exchanges posted on Wednesday late evening.

“The bank’s purported claim arises under a Debt Service Reserve Agreement entered into by the bank and the company for the financial facility availed by Siti Networks Ltd,” it said.

ZEEL is “vehemently disputing the bank’s claim in other proceedings filed by the bank against the company for recovery of its alleged dues,” it added further.

SITI Networks, formerly known as SITI Cable Network, is a part of the Essel Group.

It provides its cable services at 580 locations and adjoining areas, reaching out to over 11.3 million digital customers. In April this year, Housing Development Finance Corporation Ltd (HDFC) moved NCLT against the country’s leading multi-system operator SITI Networks Ltd for alleged default of Rs 296 crore.

( Source : Deccan Chronicle. )
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