On Friday, the National Company Law Appellate Tribunal halted the insolvency proceedings against Zee Entertainment Enterprises Ltd (ZEEL), a prominent media company.
Admitting a plea by ZEEL Managing Director and chief executive Punit Goenka, a two-member NCLAT bench stayed the order passed by the Mumbai bench of the National Company Law Tribunal (NCLT).
On Wednesday, NCLT admitted a insolvency plea against ZEEL by private sector lender IndusInd Bank and also appointed Sanjeev Kumar Jalan as the resolution professional in the matter.
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On Friday, NCLAT issued a notice to IndusInd Bank and the resolution professional directing them to file a reply and listed the matter on March 29 for final disposal.
The matter pertains to a default of Rs 89 crore by Zee Groups multisystem operator arm Siti Networks claimed by IndusInd Bank, for which ZEEL was a guarantor.
The private sector lender has also filed a separate insolvency petition against Siti Networks at NCLT. The tribunal has appointed Mohit Mehra as the resolution professional in this matter.
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The development comes at a time when ZEEL is at advanced stages of merging with Culver Max Entertainment (Sony) in one of the biggest deals in the media and entertainment sector.
(With agency inputs)