Zee enters into a one-time settlement with Standard Chartered for credit facility availed by Siti Networks

Zee Entertainment Enterprises Ltd (ZEEL) has entered right into a one-time agreement settlement with Standard Chartered Bank for the mortgage taken with the aid of using Siti Networks, part of the Essel Group.

Standard Chartered Bank had sanctioned positive credit score centers to Siti Networks, which become inter-alia secured with the aid of using DSRA (Debt Service Reserve Account) guide and task from ZEEL.

"Since the Borrower has defaulted in its debt reimbursement responsibilities to the Bank, the Company has entered right into a one-time agreement settlement with the Bank in appreciate of DSRA Claims/Undertaking withinside the hobby of amicably resolving the troubles among the events," stated ZEEL in a regulatory submitting on Thursday.

Though the company, that is merging with rival Culver Max Entertainment Pvt Ltd, previously referred to as Sony Pictures Networks India, has now no longer referred to the amount.

Siti Networks, previously referred to as Wire and Wireless Ltd, is a multisystem operator promoted with the aid of using media baron Subhash Chandra-led Essel Group.

Earlier this week, ZEEL introduced settling its dispute and claims with IndusInd Bank.

The be counted pertained to a default in bills with the aid of using Essel Group`s multisystem operator arm Siti Networks. ZEEL become a guarantor to the loans taken with the aid of using Siti Networks.

In February final year, IndusInd Bank filed a plea earlier than the Mumbai bench of NCLT to provoke insolvency lawsuits in opposition to ZEEL claiming that the media and leisure company defaulted Rs 83.08 crore.

The NCLT had admitted the plea and had directed to provoke insolvency lawsuits with the aid of using appointing an period in-between decision expert for ZEEL.

Later, ZEEL Managing Director and Chief Executive Puneet Goenka moved the appellate tribunal NCLAT difficult the order of NCLT.

The National Company Law Appellate Tribunal (NCLNCLAT stayed the lawsuits on February 24 this year.

On March 29, NCLAT become knowledgeable approximately the agreement with the aid of using each events.

"It is submitted that as consistent with agreement settlement, positive bills/responsibilities were undertaken which will be cleared as much as June 30, 2023, or inside seven days of the sanction of the scheme whichever is earlier," the NCLAT order stated on March 29.

"It is in addition submitted that events have additionally agreed that during view of the agreement, the scheme that is pending attention in NCLT, Mumbai will be taken into consideration on its personal deserves with out this attraction being any obstacle in identifying the scheme and the Respondent (Indusind Bank) and the Respondent shall withdraw the objection filed to the scheme," NCLAT recorded.

The settlement among the events additionally carries a category of effects of termination, it added.

This is a primary breather for ZEEL, merging with Culver Max Entertainment, in order to create India's largest media empire. It has already obtained approval from essential stakeholders and regulators together with the truthful alternate regulator CCI.