Zee to Repay IndusInd Bank to Resolve Insolvency Proceedings and Proceed with Sony Merger
Zee Entertainment to Repay IndusInd Bank Dues, Clears Way for $10 Billion Sony Merger
Zee is set to repay the dues owed to IndusInd Bank as part of efforts to resolve insolvency proceedings and move closer to finalizing a merger with a Sony Group unit. The deal would create a media giant worth $10 billion.
Zee Entertainment Set to Repay IndusInd Bank Dues, Ends Insolvency Proceedings
Sources familiar with the matter reveal that Zee Entertainment will repay about 837 million rupees ($10 million) to IndusInd Bank as early as Friday. In turn, the bank will withdraw its insolvency proceedings against the media company. The National Company Law Appellate Tribunal recently halted the insolvency proceedings initiated by IndusInd Bank against Zee Entertainment.
IndusInd Bank’s Insolvency Proceedings Against Zee Entertainment Withdrawn
IndusInd Bank had filed for insolvency proceedings in February, which could have jeopardized the merger by halting all transactions, including asset transfers. The merger has already received approval from Zee’s shareholders and India’s antitrust regulator.
Zee Entertainment Clears Path for $10 Billion Sony Merger with Repayment of IndusInd Bank Dues
While representatives for Zee Entertainment and IndusInd Bank have yet to comment, a lawyer representing Zee had previously informed NCLAT that the Sony deal had secured all necessary approvals. However, the initiation of corporate insolvency proceedings could have stalled the merger. With the repayment of dues, the way is now clear for the two media giants to merge and create a $10 billion entity.
Zee Entertainment, a conglomerate in the Indian media industry, is owned by the Essel Group. With its headquarters situated in Mumbai, the company has invested in various fields such as television, print, internet, film, mobile content, and has a global presence with 45 channels operating worldwide.
About IndusInd Bank:
Headquartered in Mumbai, IndusInd Bank is a financial services company operating in India. The bank provides various commercial, transactional, and electronic banking products and services. Its inauguration took place in April 1994, with the then Union Finance Minister Manmohan Singh presiding over the event.
Sony Pictures is a multinational conglomerate specializing in mass media and entertainment, headquartered in the United States. The company produces, acquires, and distributes filmed entertainment across various platforms.
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