The National Company Law Tribunal (NCLT) has admitted Zee Learn, an Essel Group company, under bankruptcy proceedings following a petition filed earlier by private lender Yes Bank for alleged defaults of Rs 468.9 crore.
Of the total defaults, Rs 410.7 crore was the principal amount and the remaining was the interest. The date of default, as per the bankruptcy filings, was August 2, 2021.
“The application made by the financial creditor is complete in all respects as required by law. It clearly shows that the corporate debtor is in default of a debt due and payable, and the default is in excess of minimum amount stipulated under the Insolvency and Bankruptcy Code (IBC). Therefore, the debt and default stands established and there is no reason to deny the admission of the petition,” NCLT said in its order.
“In view of this, this adjudicating authority admits this petition and orders initiation of Corporate Insolvency Resolution Process (CIRP) against the corporate debtor,” it said.
The bankruptcy court has appointed Rohit Mehra as the interim resolution professional to carry out the functions as per the IBC, it added.
Yes Bank had moved the bankruptcy court in December last year after Zee Learn defaulted on payment of dues. The private lender had provided loans to four entities of the company, and the accounts of principal borrowers were declared as non-performing assets on March 31, 2021.
Yes Bank had filed the bankruptcy petition Section 7 of IBC, which allows a financial creditor to file an application for initiating the process.
Zee Learn, which operates through various schools and educational institutions, provides education across India through its various ventures.