IndusInd Bank Files Insolvency Petition Against Zee Entertainment

IndusInd Bank has filed an insolvency petition against Zee Entertainment over a default of Rs 83 crore.

<div class="paragraphs"><p>Zee Entertainment channels. (Source: BloombergQuint)</p></div>
Zee Entertainment channels. (Source: BloombergQuint)

IndusInd Bank Ltd. has filed an insolvency petition against Zee Entertainment Enterprises Ltd. over a default.

"An application under Insolvency and Bankruptcy Code has been filed by IndusInd Bank, claiming to be a financial creditor, before the National Company Law Tribunal, Mumbai Bench for initiation of Corporate Insolvency Resolution Process against the company, claiming a default of Rs 83.08 crore," Zee Entertainment said in an exchange filing.

Zee Entertainment is party to the Debt Service Reserve Account Guarantee Agreement with lnduslnd Bank for a term loan facility advanced to Siti Networks Ltd.

"The issue of the company's alleged default under the DSRA Guarantee Agreement, is sub-judice before the Delhi High Court in suit filed by the company against lnduslnd Bank," the company said.

The corporate insolvency resolution process application is in breach of the Dec. 3 order passed in the company's appeal, it said. Zee Entertainment said it will take appropriate legal steps against IndusInd Bank's petition.