Zee Entertainment Plummets 14%, Hits 52-Week Low on Insolvency Proceeds

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Zee Entertainment Plummets 14%, Hits 52-Week Low on Insolvency Proceeds
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the media company Zee Entertainment (NS: ZEE ) plunged 14.4% on Friday and hit a new 52-week low of Rs 176.55 apiece in the morning trade on Friday after the bankruptcy court admitted the company under an insolvency plea filed by a private sector lender, on grounds of default of over Rs 83 crore.

The Essel Group-owned media company informed in a regulatory filing on Feb 22 that IndusInd Bank (NS: INBK ) has filed a petition against Zee Entertainment under Section 7 of the Insolvency & Bankruptcy Code, as pronounced by the Mumbai Bench of National Company Law Tribunal, in an order dated Feb 22.

This means that Zee Entertainment has been admitted under NCLT on account of the corporate insolvency resolution process. 

IndusInd Bank has claimed a default amount of Rs 83.08 crore or $10.04 million against the media company. Zee is a party to the Debt Service Reserve Account (DSRA) Guarantee Agreement entered into with the private bank for the term-loan facility advanced to another Essel Group firm, Siti Networks, stated the filing.

Reports suggest that NCLT has appointed Sanjay Kumar Jhalani as the interim resolution professional.

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  • Abhijit Joardar @Abhijit Joardar
    Not on Friday, it should be Thursday 23rd Feb'23 the stock hit Rs 176.55
    Like 1
  • krishna hare @krishna hare
    2023 down
    Like 1

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