Zee Entertainment Enterprises Ltd (Zee) on Wednesday said that it has entered into an agreement with IndusInd Bank Ltd to settle all disputes and claims between the two parties.

The settlement of the dispute would pave way for Zee’s merger with Sony.

“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.

The announcement led to Zee shares climbing 3.40 per cent or Rs 7.10 to end at Rs 216 on the BSE.

On February 24, the National Company Law Appellate Tribunal (NCLAT) stayed the insolvency proceedings that were initiated against Zee following a petition filed by the private sector lender before the National Company Law Tribunal (NCLT).

IndusInd Bank had filed a plea before the Mumbai bench of the NCLT to initiate insolvency proceedings against Zee claiming that the media firm defaulted Rs 83.08 crore.

The Mumbai bench of the NCLT had admitted theplea and appointed Sanjeev Kumar Jalan as the interim resolution professional in the matter.

Subsequently, Zee managing director and chief executive Puneet Goenka moved the appellate tribunal NCLAT challenging the order of the NCLT.

The appellate body then decided to stay the proceedings.

After this, Zee which is keen to complete the proposed merger with Sony had agreed to pay the dues to IndusInd Bank.

The private sector bank had claimed that Zee had not fulfilled its obligation under a debt service reserve account agreement (DSRA) between the lender and Siti Networks to which Zee was a party.

Zee is merging with rival Culver Max Entertainment Pvt Ltd, formerly known as Sony Pictures Networks India, which will create India’s biggest media empire.