IDBI Bank files insolvency plea against Zee Ent to recover Rs 149 cr

IDBI Bank has claimed an amount of Rs 149.60 crore, which has been disputed by ZEEL, said a regulatory update from the media major.

To recover debts of Rs 149.60 crore, IDBI Bank has filed a petition with the National Company Law Tribunal (NCLT) against Zee Entertainment Enterprises Ltd (ZEEL).

According to the media giant’s regulatory statement, IDBI Bank has asserted a claim for Rs 149.60 crore that ZEEL has rejected.

In addition, IDBI Bank has applied to NCLT for the start of the Corporate Insolvency Resolution Process against the company under Section 7 of the Insolvency and Bankruptcy Code, 2016, claiming to be a financial creditor.

For the financial facility used by Siti Networks Ltd, the bank and the company entered into a Debt Service Reserve Agreement, according to the statement.

ZEEL is “adamantly contesting”

A further statement from ZEEL stated that the company is “vehemently opposing the bank’s claim in other procedures launched by the bank against the company for the collection of its alleged dues.”

The Essel Group includes SITI Networks, formerly known as SITI Cable Network.

More than 11.3 million digital consumers are served by its 580 facilities and surrounding areas that offer cable services.

The nation’s top multi-system operator SITI Networks Ltd was sued in April of this year by Housing Development Finance Corporation Ltd (HDFC) for alleged default of Rs 296 crore.

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