Zee Entertainment Enterprises Ltd on Thursday moved NCLAT against NCLT admitting IndusInd Bank's challenge to Zee-Sony merger. Zee Entertainment has filed an appeal in National Company Law Appellate Tribunal (NCLAT), seeking relief against the order passed by the Mumbai bench of the National Company Law Tribunal.
IndusInd Bank, in its plea before NCLT, has claimed a default of Rs 83.08 crore against Zee. ZEE is a debt-free and financially strong company, and believes in value creation for its stakeholders, said Punit Goenka, Zee Entertainment CEO
"Punit Goenka has filed an appeal in the NCLAT today, seeking relief against the order passed by the Mumbai bench of the National Company Law Tribunal (NCLT). Goenka is taking all the necessary steps as per law, to protect the interests of all stakeholders of Zee Entertainment Enterprises Ltd (ZEE) and to achieve a timely completion of the proposed merger with Culver Max Entertainment Pvt. Ltd. Goenka firmly believes in the potential of the merger, to deliver immense value to all stakeholders. ZEE is a debt-free and financially strong company, and believes in value creation for its stakeholders," said Goenka's office in a statement.
Zee had provided commitments for funding shortfalls in a debt service reserve account for Siti Networks, which had availed loans from various banks, multiple exchange filings show. Both Siti and Zee are part of the conglomerate Essel Group.
Zee had informed the exchanges in December that IDBI Bank filed an application under insolvency proceedings against the company over a default of Rs 150 crore for a loan availed by Siti.
Zee's shares, which have lost about 22% so far this year, tumbled as much as 14.4% before paring most of the losses. They closed 3.5% lower at Rs 198.75.