Bengaluru, Feb 23 (Reuters) – Shares of Indian media company Zee Entertainment Enterprises Ltd (ZEE.NS) Shares fell 14.4% on Thursday after the National Company Law Tribunal admitted the company into bankruptcy.
The move comes against a petition filed by IndusInd Bank Ltd (INBK.NS) Defaults of more than 830.8 million rupees ($10.04 million). Zee is part of the SSA guarantee agreement with the bank in relation to the term loan facility offered by Siti Networks. Both Siti and Zee are part of the Essel Group.
Multiple exchange filings show that Zee provided commitments to fund shortfalls in certain financial facility-related debt servicing reserve accounts that Siti obtained from banks.
Zee notified exchanges in December, IDBI Bank (IDBI.NS) Filed insolvency proceedings against the company for default on a Rs 150 crore loan provided by Siti.
Zee and Japan’s Sony’s local unit amid bankruptcy proceedings (6758.T) are merging their TV channels, movie properties and streaming platforms.
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Zee and Sony decide to merge in December 2021 to create a formidable company in a key growth market of 1.4 billion people to take on the likes of Netflix (NFLX.O) and disney (DIS.N) in India.
($1 = 82.7710 Indian Rupees)
Reporting by Nandan Mandayam and Nallur Sethuraman in Bengaluru; Editing by Janane Venkatraman and Eileen Soreng
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