IDBI Bank moves NCLT, files insolvency plea against Zee Ent to recover ₹149.60 cr

Private lender IDBI Bank on 15 December moved the National Company Law Tribunal (NCLT) against Zee Entertainment Enterprises Ltd (ZEEL) and sought an insolvency proceeding against the media firm to recover dues of 149.60 crore.

The lender claimed an amount of 149.60 crore, which has been disputed by ZEEL, said a regulatory update from the media major.

Under section 7 of the Insolvency and Bankruptcy Code, 2016, the IDBI Bank filed an application claiming to be a financial creditor, before NCLT for initiation of Corporate Insolvency Resolution Process against the company, it added.

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“The bank’s purported claim arises under a Debt Service Reserve Agreement entered into by the bank and the company for the financial facility availed by Siti Networks Ltd,” it said.

“ZEEL is vehemently disputing the bank’s claim in other proceedings filed by the bank against the company for recovery of its alleged dues,” it added further.

Formerly known as SITI Cable Network, SITI Networks is a part of the Essel Group and provides its cable services at 580 locations and adjoining areas, reaching out to over 11.3 million digital customers.

Earlier in April, Housing Development Finance Corporation Ltd (HDFC) moved NCLT against the country’s leading multi-system operator SITI Networks Ltd for alleged default of 296 crore.

With PTI inputs.

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