Zee Entertainment Enterprises Ltd has entered into an agreement with IndusInd Bank Ltd to settle all disputes and claims between the two parties, paving the way for ZEE’s merger with Culver Max Entertainment Pvt Ltd, formerly known as Sony Pictures Networks India.
“The company and IndusInd Bank Ltd have entered into a settlement agreement by which all disputes and claims have been settled between the company and IndusInd Bank Ltd,” ZEE said in a regulatory filing on Wednesday.
IndusInd Bank informed the National Company Law Tribunal (NCLT) that it would also withdraw its objection to ZEE’s merger with with former rival SPNI.
The settlement of the disputes will clear a major obstacle from ZEE’s path as it looks to merge with Sony.
IndusInd had filed a plea before NCLT’s Mumbai bench to initiate insolvency against ZEE, stating that the media major defaulted on dues worth Rs 83.08 crore.
NCLT had appointed Sanjeev Kumar Jalan as the interim resolution professional in the matter. Punit Goenka, MD and CEO of ZEE, had moved the appellate tribunal challenging NCLT’s order, following which NCLAT had stayed the proceedings.
After this, ZEE, keen to complete the proposed merger with Sony, had agreed to pay the dues to IndusInd Bank.
Reacting to this development, ZEE shares rose over 5 percent intraday to a nearly one-week high of Rs 219 apiece on the BSE. The stock has fallen over 11 percent this year.
Shares of IndusInd Bank were also trading higher in late afternoon deals on Wednesday.
