IndusInd Bank moves NCLT against Zee Entertainment

Mumbai: Private lender IndusInd Bank has moved National Company Law Tribunal (NCLT), seeking to initiate corporate insolvency proceedings against Zee Entertainment Enterprises Ltd, according to an exchange filing. The lender has claimed a default of Rs 83 crore.

On Friday, ZEE Entertainment shares closed 3.08% lower at Rs 278.65 apiece on NSE. The company is party to the debt service reserve account guarantee agreement ("DSRA Guarantee Agreement") entered into with Induslnd Bank for the term loan facility advanced to Siti Networks Limited, ZEE said in a filing.

The issue of the company's alleged default under the DSRA guarantee agreement, is sub-judice before the Delhi High Court filed by the company against Induslnd Bank Ltd, Zee said.

It added that the corporate insolvency resolution process is in breach of the order passed in the company's appeal and therefore, it will adopt appropriate legal steps in this regard.