IPRS files insolvency case against ZEEL, details here

The operational creditor to Zee Entertainment Enterprises (ZEEL), the Indian Performing Right Society (IPRS), has filed an insolvency petition against the media company. IPRS has claimed a debt of Rs 211.42 crore. The petition has been filed before the National Company Law Tribunal’s (NCLT) Mumbai bench under Section 9 of the Insolvency and Bankruptcy Code (IBC), as told by ZEEL in a regulatory update. The operational creditor is seeking the initiation of an insolvency process against the firm. ZEEL has notified that the creditor is claiming debt and default towards royalty payable for using “literary and musical works”. According to a Financial Express report, ZEEL is going to file its reply rejecting the claim on the ground that on the claimed sum, there is a pre-existing dispute between the two parties. The firm added that the claim is not in consonance with legal interpretation regarding the point of payment of royalties. This is not the only insolvency claim that has been filed against ZEEL. IDBI Bank had also filed an application seeking initiation of the insolvency proceedings against ZEEL in December 2022. The application claimed Rs 149.6 crore of default. ZEEL had stated about the matter that the bank’s claim arose under a debt service reserve agreement entered into by both parties for financial facilities availed by the Siti Network. The bank’s claim had been “vehemently” disputed by ZEEL. Housing Development Finance Corporation (HDFC) had moved NCLT against Siti due to alleged default of Rs 296 crore in April. Previously, IndusInd Bank had moved the bankruptcy court in February 2020 and sought payment of more than Rs 89 crore from ZEEL. ZEEL is a media and entertainment company which offers entertainment content to diverse audiences. The firm has a presence in broadcasting, digital, movies, music, live entertainment, and theatre businesses, both in India and abroad. The consolidated net profit of ZEEL fell 58.2 per cent to Rs 112.89 crore in Q2 FY23 against Rs 270.16 crore reported in Q2 FY22. The revenue from operations increased by 2.5 per cent to Rs 2,028.40 crore in the quarter that ended 30 September 2022 from Rs 1,978.79 crore during the same period a year ago. Previously known as Zee Telefilms Ltd, Zee Entertainment Enterprises Ltd was incorporated on 25 November 1982. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.