Zee Entertainment Settles Dispute, Claims With Operational Creditor
There's no penalty paid and no material impact on the financial position of the company, said Zee.
Zee Entertainment Enterprises Ltd. told the exchanges on Thursday that it settled all disputes and claims with its operational creditor—the Indian Performing Right Society Ltd.
Subsequently, the insolvency petition and an objection filed by the IPRS against the media company has been disposed of by NCLT as withdrawn. Zee said the final disposal orders dated March 9 were made available on Thursday.
Zee had entered a settlement agreement with the IPRS on March 6 for an amicable resolution of all disputes and claims between the two entities.
In January, the IPRS had approached the Mumbai bench of the National Company Law Tribunal for initiation of insolvency proceedings against Zee over a debt and default of Rs 211.4 crore towards royalty payable for utilisation of literary and musical works.
"There is no penalty paid and no material impact on the financial position of the company," Zee said.
Earlier on Thursday, Zee agreed to repay Rs 83.7 crore of dues that it owed to IndusInd Bank Ltd., Bloomberg reported.
The private sector lender had approached the NCLT in February with the request to initiate insolvency proceedings against Zee. With the dues paid, IndusInd Bank has agreed to withdraw its insolvency petition against Zee, the report said.
Appellate tribunal NCLAT had halted the insolvency proceedings against the media major last month.
Shares of Zee surged 9.26% to Rs 206.55 apiece as compared with a 0.14% rise in the benchmark Sensex after a volatile trading session.