NCLAT stays NCLT's ZEE insolvency order
ZEEL CEO Punit Goenka has welcomed the decision taken by NCLAT, adding that the network remains committed to protecting stakeholder interest
In a relief for ZEE, the National Company Law Appellate Tribunal (NCLAT) on Friday stayed the order by National Company Law Tribunal (NCLT) that initiated insolvency against the broadcast giant in a plea filed by its financial creditor IndusInd Bank, under Section 7 of the Insolvency and Bankruptcy Code (IBC).
"We respect the decision taken by the Hon’ble National Company Law Appellate Tribunal (NCLAT) and remain committed towards protecting the interests of all stakeholders. Our focus continues to be on the timely completion of the proposed merger," said Punit Goenka.
The NCLT had admitted IndusInd Bank's insolvency plea against ZEE Entertainment in a 2019 matter where the network had guaranteed the bank's Rs 150 crore loan to Siti Networks, which was expected to maintain an amount that was equal to the interest and principal of a quarter at all times in the account for servicing its debt. IndusInd Bank, in its plea filed in February 2022, claimed a default of Rs 83.08 crore against the media and entertainment firm.
The admission of the insolvency petition brought to a standstill the merger of ZEE and Sony. According to IBC, once a company is admitted to insolvency, moratorium kicks in barring any transfer of assets.
