Zee Entertainment insolvency: NCLAT to hear Punit Goenka's appeal today

The National Company Law Appellate Tribunal (NCLAT) has scheduled Zee Entertainment's managing director and chief executive officer (CEO) Punit Goenka's appeal for hearing on February 24, a report by Mint said. 

Goenka had appealed the NCLT's decision to allow IndusInd Bank to file for insolvency proceedings against Zee. In a statement on Thursday, Goenka's office said that he was taking all necessary steps to protect the interests of Zee stakeholders and achieve timely completion of the proposed merger with Culver Max Entertainment (formerly Sony Pictures Networks India).

"Zee is a debt-free and financially strong company, and believes in value creation for its stakeholders," the statement said.

In its order, NCLT allowed IndusInd Bank to admit the company under Corporate Insolvency Resolution Process (CIRP). It also appointed Sanjeev Kumar Jalan as the interim resolution professional. 

The problem originates from a default of Rs 89 crore by Siti Networks, a division of the Zee Group, which was asserted by the IndusInd Bank and for which ZEEL served as a guarantee. The bank then filed an insolvency petition against Siti Networks. 

Following NCLT's decision, Zee's shares fell 14 per cent intra-day on BSE. 

According to current bankruptcy rules, Zee can settle the debt to prevent problems for the merger.