MUMBAI : IDBI Financial institution on Thursday filed an insolvency software in opposition to Zee Leisure Enterprises for initiating a company insolvency decision course of (CIRP).
The lender has filed the petition below Part 7 that enables a monetary creditor to file an software for initiating CIRP in opposition to a company debtor earlier than the adjudicating authority, an alternate submitting by Zee stated.
IDBI Financial institution is without doubt one of the monetary collectors of the corporate and stated that it had filed an insolvency software claiming a default of ₹149 crore.
The financial institution’s purported declare arises below a debt service reserve settlement entered into by the financial institution and the corporate for the monetary facility availed by Siti Networks, an Essel group entity.
“The corporate is vehemently disputing the financial institution’s declare in different proceedings filed by the financial institution in opposition to the corporate for restoration of its alleged dues,” Zee stated within the submitting.
In February, an identical petition was filed by IndusInd Financial institution earlier than the NCLT below Part 7. The financial institution had claimed a default of ₹83.08 crore in opposition to the leisure firm. Zee Leisure, nonetheless, filed an interlocutory software with the tribunal for the dismissal of the lenders’ petition.
An identical dispute between Zee and one other non-public lender—the IndusInd Financial institution, was heard by the Delhi excessive court docket in September this yr. A plea was filed by IndusInd searching for readability on whether or not it might take Zee to the devoted chapter court docket for restoration of dues. Following this, on 13 September, the Delhi excessive court docket clarified that it had not restrained IndusInd Financial institution from taking Zee Leisure to the insolvency court docket. This cleared the decks for the non-public lender to provoke insolvency proceedings in opposition to the media firm to get well dues it says are owed by Siti Networks.
The matter pertains to a mortgage taken by Siti Networks. Zee was the guarantor to the mortgage availed by Siti Networks from IndusInd Financial institution when it comes to the Debt Service Reserve Account Assure Settlement (DSRA) of 29 August 2018.
On 1 October 2020, IndusInd Financial institution issued a discover to Zee invoking the DSRA Assure Settlement and requested it to pay the quantity of ₹83.70 crore.
Zee was aggrieved that the financial institution had made a requirement for an accelerated quantity which was the whole mortgage quantity superior by the financial institution to Siti on account of the shortfall within the DSRA Account.
Subsequently, Zee approached the court docket searching for interim reduction that the financial institution is restrained from searching for restoration of any quantity below the DSRA Assure Settlement when it comes to the financial institution’s discover issued on 1 October.
The media firm pleaded for a keep on the implementation of the demand raised by the financial institution by its October discover. It additionally requested the court docket to direct Siti to replenish the DSRA account with an quantity equal to 1 quarter’s curiosity and direct the financial institution to simply accept the identical.
Zee Study and its subsidiary Digital Ventures are additionally being bancrupt by numerous banks for defaulting greater than ₹500 crore. On the identical time, Zee Leisure is present process a merger with Sony Footage, which has been accredited by the regulator and shareholders.
The NCLT, nonetheless, is but to confess the insolvency petitions in opposition to Zee and its associated entities.
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