An operational creditor has filed a Rs 211-crore insolvency case against Zee Entertainment Enterprises (Zee), the media company disclosed to the stock exchanges on Monday.
“A petition has been filed under Section 9 of the Insolvency and Bankruptcy Code by the Indian Performing Right Society, an Operational Creditor, before NCLT for initiation of Corporate Insolvency Resolution Process against the Company,” Zee said.
The company said it would be filing its reply rejecting the claim on the ground that there was a pre-existing dispute between the parties on the claimed amount.
“The claim is not in consonance with the interpretation of the law on the point of payment of royalties for ‘literary and musical works’ by the Delhi High Court, and hence, the claimed amount is not due or payable to IPRS,” Zee said.
Last month, IDBI Bank had moved the NCLT against Zee, seeking an insolvency proceeding against the firm to recover dues of Rs 149.60 crore.
Zee had disputed the claim, saying it arose under a Debt Service Reserve Agreement it signed with the bank for the financial assistance availed by Siti Networks.
On Monday, Zee’s shares closed 1.35 per cent higher on the BSE at Rs 243.15 each.
Note:- (Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor. The content is auto-generated from a syndicated feed.))
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