The company said in its late filing on Wednesday, to the stock exchange that IDBI Bank, claiming to be a financial creditor, filed the petition before the Mumbai bench of the National Company Law Tribunal (NCLT).
“The Bank’s purported claim arises under a Debt Service Reserve Agreement entered into by the bank and the company for the financial facility availed by Siti Networks Ltd,” said the company in its filing. “The company is vehemently disputing the Bank’s claim in other proceedings filed by the Bank against the Company for recovery of its alleged dues,” it added.
The development comes at a time when ZEEL is in the process of a merger with Sony Pictures Network India (SPN). Last year on December 22, ZEE and SPN signed a definitive agreement to merge the two companies.
The proposed merger will see ZEE merging into SPN and, after closing, the merged company will be publicly listed in India.
As per the agreement, ZEE MD & CEO Punit Goenka will lead the merged company as its MD and CEO. The board will have nine directors, of whom the Sony Group will nominate five, while three will be independent.
The company has already received approval from stock exchanges, the anti-monopoly regulator the Competition Commission of India (CCI) and also from its shareholders.
Under the terms of the arrangement, Sony will hold a 50.86 % stake in the merged entity. The promoters of Zee will hold 3.99% and other Zee shareholders will hold a 45.15% stake in the combined company.
Also, the development comes at a time when another listed affiliate of the group Zee Learn Ltd is also facing a similar application to admit the company for insolvency resolution process by Yes Bank Ltd for the default of about Rs 468 crore.
