Shares of Zee Entertainment broke the three-session losing streak on Wednesday as the company announced settling the insolvency case with IndusInd Bank.
What Happened: Zee Entertainment Enterprises and IndusInd Bank have told the National Company Law Appellate Tribunal (NCLAT) that a settlement has been reached by the two companies in the insolvency case on March 29. The Bank has also informed that it will be withdrawing its objection to the Zee-Sony merger.
Zee is said to have made certain payments to the bank and has agreed to pay the rest by June 30 or within seven days of the merger. The case has now been adjourned for hearing on July 3.
The insolvency case was filed by IndusInd Bank last month against the media giant. IndusInd Bank in its petition claimed a default of ₹83.08 crore against Siti Network, which is also an Essel group company. Zee was held liable as a guarantor of the loan worth ₹150 crore.
Shares of both entities shot up after the announcement made headlines. Shares of Zee that were muted since market open shot up around 4% after the announcement was made at around 12:30 pm. IndusInd shares also received a bump after the announcement.
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Price Action: Zeel share price was up 3.88% to trade at ₹217.
IndusInd Bank share price was up 1.18% to trade at ₹1,048.20 in the late hours of trading on Wednesday.
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