Zee Entertainment calls report of $10 million repayment 'speculative'

In a report on Thursday, Bloomberg said that the media company has agreed to repay its dues to the IndusInd Bank to resolve insolvency proceedings against it

On Thursday, Zee Entertainment Enterprises Ltd (ZEEL) called the report saying it will repay $10 million to IndusInd to wrap the Sony deal as "speculative". In a filing with BSE, the media company said it is exploring several strategies related to the ongoing dispute.

ZEEL added, "there is no clarity at this stage as to which resolution or strategy the Company will finally pursue, much less the timing of any such strategy. Accordingly, we believe that the news report is speculative in nature."

On Thursday, Bloomberg reported that the media company has agreed to repay its dues to the IndusInd Bank to resolve insolvency proceedings against it and get a step closer to completing its merger with the Sony Group.

It also said that the amount could be paid as soon as Friday and that the IndusInd bank has agreed to withdraw its insolvency proceedings against ZEEL.

IndusInd Bank had approached the bankruptcy code in February to initiate insolvency proceedings against ZEEL. The National Company Law Appellate Tribunal (NCLAT) later provided interim relief to the company by putting a stay on the proceedings. The next hearing will be held on March 29.

A lawyer representing Zee told NCLAT last month that the Sony deal had received all necessary approvals but would be stalled because of the initiation of corporate insolvency proceedings. The merger has reportedly been approved by Zee's shareholders and the Competition Commission of India (CCI).