IndusInd Bank moves NCLT against Zee Entertainment

Lender IndusInd Bank has moved National Company Law Tribunal (NCLT) against Zee Entertainment over an alleged default of just over Rs 83 crore.

According to a regulatory filing by Zee Entertainment, an application has been filed against the company under the Insolvency and Bankruptcy Code, 2016.

"An application has been filed against the Company, under Section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy Rules 2016, by IndusInd Bank Limited, claiming to be a 'Financial Creditor', before the Hon'ble National Company Law Tribunal, Mumbai Bench for initiation of Corporate Insolvency Resolution Process against the Company, claiming a default of Rs.83,08,00,000," the filing said.

According to the filing, the company is a party to the 'Debt Service Reserve Account Guarantee Agreement' entered in to with lnduslnd Bank for the term loan facility advanced to 'Siti Networks'.

"The issue of the Company's alleged default under the 'DSRA Guarantee Agreement', is sub-judice before the Hon'ble Delhi High Court filed by the Company against IndusInd Bank Limited."

"Filing of the said CIRP Application is in breach of the order dated 25th February 2021 as modified by the order of 3rd December 2021 passed in the said suit."

Besides, the filing said the company will be adopting appropriate legal steps.