Zee Entertainment Enterprises (ZEEL) is set to repay dues owed to IndusInd Bank in a move that could see the lender withdraw insolvency proceedings against the media giant. Shares in ZEEL surged 8% to Rs 204.25 on the BSE following the news.
The settlement, which amounts to approximately Rs 83.7 crore, could be completed as early as Friday, paving the way for ZEEL to move closer to completing a merger with Sony Group unit, SPNI. The merger is expected to create a $10 billion media giant.
The insolvency proceedings were initiated against ZEEL after its sister concern, Siti Networks, was unable to pay a loan taken from IndusInd bank. ZEEL stood as a guarantor for the loan, leading to IndusInd Bank invoking the guarantee and making ZEEL a party to the proceedings.
The National Company Law Appellate Tribunal had previously put a stay on the National Company Law Tribunal’s order admitting insolvency proceedings against ZEEL, with the case set to be heard on March 29.
ZEEL owns and operates a bouquet of 49 TV channels across 11 languages and an OTT app, Zee5. However, concerns over an ongoing arbitration issue delaying the merger timeline with SPNI have weighed on the company’s sentiment.
ZEEL has also underperformed the market, falling 19%, compared to the S&P BSE Sensex’s 6% drop.
The underperformance has been attributed to the promoter debt issue and business challenges faced by the company.
Nevertheless, the settlement with IndusInd Bank could provide a much-needed boost for the media giant. Stock Market News;Nifty50 halts 5-day losing streak (investonomic.co.in)
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