Zee Entertainment tanks 14% as NCLT admits company to insolvency resolution
Published On: Thursday, February 23, 2023 | By: Team KnowMyStock
Shares of Zee Entertainment Enterprises (ZEEL) tanked 14 percent to hit a new 52-week low of Rs 176.60 per share on the BSE in Thursday’s early trade after the National Company Law Tribunal (NCLT) accepted IndusInd Bank’s insolvency petition against the company and admitted it into the corporate insolvency resolution process. The Mumbai Bench of the National Company Law Tribunal (NCLT) on Wednesday admitted an insolvency petition media company Zee Entertainment Enterprises filed by its financial creditor IndusInd Bank, under Section 7 of the Insolvency and Bankruptcy Code (IBC).IndusInd Bank in its plea has claimed a default of ₹83.08 crores against the media and entertainment firm promoted by Subhash Chandra. According to reports, the court has appointed Sanjay Kumar Jhalani as the interim resolution professional.
The move has likely overshadowed ZEEL’s merger with Culver Max Entertainment (Sony) after the initiation of insolvency proceedings. In December 2021, Sony and Zee signed a merger deal to combine their linear networks, digital assets, production operations, and program libraries.
“We remain committed towards the proposed Scheme of Amalgamation for the merger of Zee Entertainment Enterprises Ltd. with and into Culver Max Entertainment Pvt. Ltd. We will continue to take all the required measures to achieve a timely completion of the same, guided by legal advice, in the interest of our stakeholders, who have recognized the value and potential of the merger," said ZEEL MD & CEO Punit Goenka.
Tags: #ZEEL #Insolvency #NCLT
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