[ad_1]
The court appointed Sanjay Kumar Jhalani as interim resolution expert.
order from Petition has been submitted Zee was also a party to the debt servicing reserve account agreement between the bank and Siti Networks Ltd. after IndusInd Bank Ltd. failed to meet its obligations under the agreement. Siti Networks is part of the Essel Group.
Under the terms of the agreement, Zee has guaranteed a Rs 150 crore loan from IndusInd Bank to Siti Networks, which is expected to maintain at all times an amount equal to one-quarter interest and one-fourth principal in the account to repay the debt . Under the agreement, Zee had pledged to maintain such an amount, but it failed to do so.
According to IndusInd, Siti has failed to maintain the account since September 2019 and has been a persistent defaulter since then. According to it, the amount defaulted on that date amounted to Rs 890 crore. It told the court that, as surety, Zee was also liable for such breaches.
Zee Entertainment has questioned maintainability part of the petition, which says the breach occurred in October 2020, when bankruptcy laws were suspended.
According to it, there will be no default unless the bank explicitly invokes the guarantee, which will not be completed until 2020. The default amount was also contested as, according to it, as of 2019, the claim amount cannot exceed Rs 6.9 lakh, which is well below the minimum threshold of Rs 1 crore under the bankruptcy code.
The tribunal rejected Zee’s arguments and accepted the bank’s application.
At the same time, the court also accepted IndusInd’s bankruptcy application against Siti Networks. Rohit Mehra was appointed interim resolution expert for the process.
Zee Entertainment is in merge In partnership with Culver Max Entertainment Pvt., an indirect wholly-owned subsidiary of Sony Group Corporation.
[ad_2]
Source link