NEW DELHI, Feb 24 (Reuters) – An Indian tribunal on Friday placed on maintain insolvency proceedings in opposition to Zee Leisure Enterprises (ZEE.NS), a significant reduction for the Indian media firm that warned the authorized battle may delay its merger with an area unit of Japan’s Sony (6758.T).
The chapter proceedings had been initiated after IndusInd Financial institution Ltd (INBK.NS) filed a petition in opposition to Zee Leisure over a default of 830.80 million rupees ($10.04 million).
The tribunal has placed on maintain the insolvency proceedings in the intervening time, saying the matter required detailed deliberations and might be subsequent heard on March 29.
Throughout the listening to, Zee counsel Mukul Rohatgi warned its merger with Sony is “going to get caught” if the insolvency proceedings proceed.
Zee, a family TV title in India that was arrange in 1992, had a community share of 16.2% as of December. It competes with Disney’s (DIS.N) Star India and Reliance Industries (RELI.NS) Viacom18, and its deliberate merger with Sony’s India unit will create a $10 billion behemoth.
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Zee shares rose as a lot as 3.1% on the information and had been final up 1.2%.
“Our focus continues to be on the well timed completion of the proposed merger,” Punit Goenka, Zee’s chief govt stated after the choice.
Zee had acted as a guarantor for loans availed by a sister firm, and India’s IndusInd invoked the assure alleging default on cost, trade filings present.
Zee on Friday disputed its legal responsibility within the tribunal saying, in line with them the legal responsibility didn’t meet the brink for initiating insolvency proceedings. IndusInd denied that.
IndusInd didn’t instantly reply to Reuters’ request for remark.
($1 = 82.7750 Indian rupees)
Reporting by Arpan Chaturvedi in New Delhi and Nallur Sethuraman in Bengaluru; Modifying by Nivedita Bhattacharjee and Eileen Soreng
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