NCLAT stays insolvency proceedings against Zee

The National Company Law Appellate Tribunal on Friday stayed the insolvency proceedings against media major Zee Entertainment Enterprises Ltd (ZEEL). 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 an insolvency plea against ZEEL by private sector lender IndusInd Bank and also appointed Sanjeev Kumar Jalan as the resolution professional in the matter.

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 Group's 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.

The development comes at a time when ZEEL is in the advanced stages of merging with Culver Max Entertainment (Sony) in one of the biggest deals in the media and entertainment sector.

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