National Company Law Tribunal (NCLT) on Friday dismissed the insolvency resolution petition filed by IDBI bank against Zee Entertainment Enterprises Ltd (ZEEL).
The plea was filed in December 2022 before the Mumbai bench of the tribunal by the bank over Zee’s default on a Rs 149 crore loan.
Counsels representing Zee argued before NCLT that since the default happened on a date during the suspension period, the insolvency petition can’t be admitted under Section 10A of the Insolvency and Bankruptcy Code, 2016, Economic Times reported.
Reports suggested that Zee had offered to pay back its Rs 149 crore loan to IDBI bank in tranches.
The ruling in the case comes after Zee settled its disputes with IndusInd Bank and Indian Performing Right Society, following which both entities withdrew their insolvency plea against the company from the tribunal.
Bloomberg reported last month that Zee has started talks with its creditors to settle its debts ahead of its merger with Sony Group.
The merger of the companies is expected to create a $10 billion media giant.
Sony Group and Zee announced the deal in December 2021. According to the agreement signed by the two, Sony will get a 50.86% in the merged entity while Zee promoters will hold a 3.99% stake. Other shareholders of Zee will get 45.15% stake in the entity.
Zee MD and CEO Puneet Goenka is expected to lead the new entity with the board of directors having nine members. Sony will get to appoint five directors while three will be independent.
The merger has received approval from Competition Commission of India, stock exchanges and the shareholders of the company.