Relief for ZEEL as NCLAT stays NCLT’s insolvency order

The National Company Law Appellate Tribunal (NCLAT) at a hearing held today (February 24, 20230) stayed the order for insolvency proceedings against Zee Entertainment Enterprises Ltd (ZEEL). Punit Goenka, Managing Director and CEO, ZEEL, had filed a petition with the NCLAT yesterday (February 23, 2023), challenging an order by the Mumbai bench of the National Company Law Tribunal (NCLT), which admitted a insolvency plea by private sector lender IndusInd Bank against ZEEL.

Reacting to the stay order by the NCLAT, Punit Goenka in a statement issued said, “We respect the decision taken by the Hon’ble National Company Law Appellate Tribunal (NCLAT) and remain committed towards protecting the interests of all stakeholders. Our focus continues to be on the timely completion of the proposed merger (with Culver Max Entertainment – earlier known as Sony Pictures Networks India).”

A per media reports, the insolvency case is related to Siti Networks, which is an MSO under the Zee Group, defaulting on a loan of Rs 89 crore taken from IndusInd Bank. ZEEL was the guarantor.