Insolvency case: NSE asks Zee Entertainment to move out of IBC framework

In a notice, NSE said,NCLATPrincipal Bench, New Delhi… has stayed the order of NCLT, Mumbai Bench, Court III… Writ initiated against IBC proceedings zee entertainment Enterprises Limited (ZEEL).”

Accordingly, NSE said, “The scrip will move out of the ZEEL IBC framework and the related monitoring action will be reverted to ZEEL.”

With regard to F&O trading, NSE said, “In addition to the existing contracts with expiry months of March 2023 and April 2023, futures and options contracts with expiry of May 2023 will be made available for trading from February 28, 2023.”

NSE advised members to load the updated contract file in the trading application before trading on February 28, 2023.

On the NSE, ZEEL shares closed at Rs. 182.55 each, down 6.65%.

Last week, the NCLAT stayed the insolvency proceedings initiated against it by the bankruptcy court over loan default from private lender IndusInd Bank.

Allowing the petition filed by ZEEL Chief Executive Officer Punit Goenka, the appellate tribunal issued notice directing IndusInd Bank and the interim resolution professional to file a reply in two weeks.

Earlier, NCLT Mumbai had accepted a petition filed by IndusInd Bank Ltd to initiate insolvency proceedings against ZEEL.

NCLT decision for insolvency proceedings with respect to loan default 89 crores borrowed from IndusInd Bank by Siti Networks, the multisystem operator arm of Zee Group. ZEEL was the guarantor of this loan.

IndusInd Bank also filed a separate insolvency petition against Citi Networks in the NCLT.

The NCLT ruling comes as Zeel is in advanced stages of merger with Sony in one of the biggest deals in the media and entertainment sector.