ZEE Ent says reports of $10 million repayment to IndusInd Bank ‘speculative’

In a regulatory filing, in a regulatory filing, ZEEL said, “IndusInd Bank’s interaction with or clarification regarding such incidents.”zee entertainment Enterprises Limited (the “Company”) is exploring several strategies, including a settlement, with respect to the ongoing dispute mentioned in the news report.”

However, it further said, “There is no clarity at this stage as to what resolution or strategy the company will follow, let alone the time for such a strategy. Accordingly, we believe that the news report is speculative in nature.”

People with knowledge of the matter told Bloomberg that the company has agreed to pay the dues. IndusInd Bank Ltd. as the company seeks to resolve insolvency proceedings initiated against it and is close to completing a merger with the Sony Group unit to create a $10 billion media giant.

According to the report, the sources revealed that the settlement of around 837 million rupees ($10 million) to IndusInd Bank could happen by Friday. Also, he added that the Mumbai-based bank has agreed to withdraw its insolvency proceedings after ZEEL makes repayments.

Following the development, ZEEL share price climbed at least 10% to intraday high 207.95 per share on BSE. Strong buying activity was seen in the stock throughout the day.

out of stock 206.55 on the BSE, up 9.3%.

Ashwin Patil, Senior Research Analyst, LKP Securities said today, “This is positive news as it will ease the way for Zee to merge with Sony as it was a stumbling block for Zee. NCLT approval will be the final step towards completion of the merger. Positive for the stock.”

In other good news, ZEEL also settled all disputes and claims with the Indian Performing Right Society Limited (“IPRS”). Accordingly, IPRS has withdrawn its petition in NCLT.

Earlier this month, ZEEL and IPRS entered into an agreement to settle all disputes and claims. There was a dispute regarding IPRS and ZEEL 211 crore is due which the latter had to pay.