Zee Entertainment shares rise 7% as IndusInd Bank likely to withdraw insolvency case

Zee Entertainment shares rose 7% on Thursday on report that the media firm agreed to pay IndusInd Bank's dues and the lender is likely to withdraw insolvency case against it.

The settling of dues of about $10 million to the lender could happen as early as Friday and the Mumbai-based bank has agreed to withdraw its insolvency proceedings against the media company once the repayment is made, reported Bloomberg on Thursday.

This brings Zee Entertainment Enterprises Ltd closer to completing a merger with a Sony Group unit to create a $10-billion media giant.

At 1345 hours on Thursday, Zee Entertainment's shares on BSE were trading 7.5% higher at Rs 203.7 apiece.

In February, NCLT admitted a petition filed by IndusInd Bank Ltd to initiate insolvency proceedings against the media company. Zee Entertainment had stood as a guarantor of a loan worth Rs 150 crore given by IndusInd Bank to Siti Networks, which is an Essel group company.

The Zee-Sony merger has already received approval from NCLT, CCI and shareholders.