The National Company Law Tribunal (NCLT) on Friday dismissed an insolvency plea filed by IDBI Bank against Zee Entertainment Enterprises Ltd.
The ruling removes a hurdle before Zee's proposed merger with Sony.
IDBI Bank in December moved the tribunal seeking insolvency proceedings to recover Rs 149.60 crore.
Filed under section 7 of the Insolvency and Bankruptcy Code, 2016, the bank said itwas a financial creditor and sought the initiation of the corporate insolvency resolution process.
In its response, Zee said the “bank’s purported claim arises under a debt service reserve agreement (DSRA) entered by the bank and the company for the financial facility availed by Siti Networks Ltd”.
The company added that it is disputing the bank’s claim in other proceedings filed by the lender against the company for the recovery of its alleged dues.
Zee is engaged in settlement talks with lenders to repay debts as it is keen on completing the merger with Sony.
A Bloomberg report said it offered to repayIDBI Bank Rs 149 crore in tranches. It also said the media major is in talks with Axis Bank and JC Flowers to settle dues of Rs 40 crore each.