Zee challenges NCLT order initiating insolvency proceedings against it

Zee challenges NCLT order initiating insolvency proceedings against it

Zee Entertainment was the guarantor for a loan, which Siti hasn't been paying back since 2019.

FPJ Web DeskUpdated: Thursday, February 23, 2023, 08:09 PM IST
article-image

In 2019, Subhash Chandra had to step down as the Chairman of Zee Entertainment, after he was forced to sell 16.5 per cent of his stake in the firm to repay loans. The media baron and his family had borrowed Rs 7,000 crore from local and Russian lenders, to finance infrastructure projects that failed to generate expected returns. Now his son Punit Goenka is battling to save Zee from insolvency over a default by another entity, Siti Cable.

Siti and Zee's connection

Founded by Subhash Chandra, Siti is a part of the Essel Group owned by his family, and took a loan of Rs 150 crore from IndusInd Bank. Zee Entertainment was the guarantor for this loan, which Siti hasn't been paying back since 2019, and the default as of now stands at Rs 89 crore. Based on this, the National Company Law Tribunal (NCLT) accepted the bank's plea to initiate insolvency proceedings against Zee.

Fighting to save the big media merger?

Now Zee Entertainment CEO and MD Punit Goenka, who is Subhash Chandra's son, has opposed the NCLT order in the appellate tribunal NCLAT. He argues that the firm is in a position to protect interests of all stakeholders through a merger with Sony owner Culver Max Entertainment. The merger between the two Indian television giants was contested in the NCLT by Zee's lenders IDBI, IndusInd and Axis, and that case has been adjourned till March 9.

RECENT STORIES

Gaja Capital Plans IPO, Files Draft Papers With Sebi

Gaja Capital Plans IPO, Files Draft Papers With Sebi

At BRICS Meet, FM Nirmala Sitharaman Holds Bilateral Talks With China, Russia, Brazil, And Indonesia

At BRICS Meet, FM Nirmala Sitharaman Holds Bilateral Talks With China, Russia, Brazil, And Indonesia

New Aadhaar Rules Announced, Check Updated Document List For Enrolment & Changes

New Aadhaar Rules Announced, Check Updated Document List For Enrolment & Changes

Microsoft Exits Pakistan After 26 Years, Major Blow To Tech Ecosystem

Microsoft Exits Pakistan After 26 Years, Major Blow To Tech Ecosystem

Telangana Government's Big Decision On Work Hours, Now Only This Much Work Required Daily

Telangana Government's Big Decision On Work Hours, Now Only This Much Work Required Daily