ZEEL Stated ‘Speculative Report’ on $10 Million Repayment to IndusInd Bank

Picture Source: Internet

On March 16, Zee Entertainment Enterprises Limited (ZEEL) condemned the report, stating that the company is ready to repay $10 million to IndusInd Bank for wrapping up the Sony deal, calling it ‘speculative’.

The media company mentioned that it is discovering several strategies, which include settlement, about the current dispute stated in the news report after it issues clarification to the stock exchanges.

On the other hand, the firm added that there is no clarity regarding which type of resolution or strategy the media firm will finally follow, even after having less time for any such strategy. Therefore, they believe that the news report is speculative.”

At 10 am, the stock was quoted at Rs 200.65 on the NSE, down 2.93% from its previous close. The stock surged 9% in the trading session following the March 16 Bloomberg report. The stock is down 18% so far in 2023.

In February, IndusInd Bank approached the bankruptcy court to initiate insolvency proceedings against ZEEL. This change could have threatened the merger by discontinuing all transactions, which include asset transfers. Insolvency proceedings against Zee Enterprises were kept on hold last month by the National Company Law Appellate Tribunal (NCLAT).

The National Company Law Appellate Tribunal (NCLAT) kept the NCLT’s order acknowledging insolvency proceedings against ZEEL last month. A hearing will be conducted on March 29. Meanwhile, analysts are awaiting details on the progress of the merger.

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