Zee Entertainment shares surged on Thursday after the media firm agreed to pay IndusInd Bank’s dues and resolve insolvency proceedings initiated against the company.
What Happened? According to a Bloomberg report, Zee Entertainment (ZEEL) is expected to settle dues of about $10 million (₹82.7 crore) to IndusInd Bank by as early as Friday, March 17.
The report states that the lender has agreed to withdraw its insolvency proceedings against Zee once the repayment is done.
The development brings Zee Entertainment Enterprises Ltd closer to completing a merger with a Sony Group unit to create a $10 billion (₹82,689 crore) media giant. The merger has already been green-flagged by the National Company Law Appellate Tribunal (NCLAT), the CCI, and shareholders.
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In February, the NCLAT admitted a petition filed by IndusInd Bank to initiate insolvency proceedings against the media company. Zee Entertainment had stood as a guarantor of a loan worth ₹150 crore given by IndusInd Bank to Siti Networks, which is an Essel group company.
The petition was challenged by ZEEL by filing another appeal against the maintainability of the petition by the bank.
Price Action: Zee Entertainment shares were up 8.83% at ₹205.75 on Thursday afternoon.
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