IDBI Bank, a private sector lender, has filed an application seeking initiation of insolvency proceedings against Zee Entertainment Enterprises (ZEEL) to claim a default of ₹149.60 crore.
The bank has filed the application under Section 7 of the Insolvency and Bankruptcy Code (IBC) claiming to be a financial creditor. The bank’s purported claim arises under a debt service reserve agreement entered into by the bank and ZEEL for a financial facility availed by SITI Networks, ZEEL said in a regulatory update.
The application was filed before the National Company Law Tribunal’s Mumbai bench, it said, adding that ZEEL is “vehemently” disputing the bank’s claim.
ZEEL also said it does not expect any financial implications in way of compensation or penalty.
SITI Networks, formerly known as SITI Cable Network, is an Essel Group company.
Earlier in April, Housing Development Finance Corporation (HDFC) had moved NCLT against SITI Networks for an alleged default of ₹296 crore.