Shares of ZEE Entertainment Enterprises (ZEEL) jumped 5 per cent in Wednesday’s trade after the company settled its dispute with IndusInd Bank over dues. In a filing to BSE, ZEEL said the company and IndusInd Bank have entered into a settlement agreement by which all disputes and claims have been settled.
Following the development, the scrip rose 5.05 per cent to hit a high of Rs 219.45 on BSE. Despite this, the scrip is down 11 per cent year-to-date and 24 per cent in the last one year.
ZEEL and IndusInd Bank have mutually entered into the settlement agreement on such agreed terms by which all disputes and claims have been settled between the company and IndusInd Bank, ZEEL said on Wednesday, adding that no penalty was paid and there is no material impact of the development on the financial position of the company.
Shares of IndusInd Bank rose 0.81 per cent to Rs 1,044.40.
The private lender had approached the NCLT in February, seeking to start insolvency proceedings against ZEEL.
“ZEE investors are a worried lot, as the merger with Sony is nearing, a slew of insolvency petitions has thrown a spanner in the works,” JM Fnancial said earlier this month.
“Legal outcome (or settlement) of these cases is anybody’s guess. But even a worst case scenario (call it Murphy’s Law test) would merely delay (and not derail) the merger, in our view,” it said.
The brokerrage had suggested that ZEEL may have to pay the entire amount claimed in various NCLT petitions in an unlikely scenario and that its impact on balance sheet and FY24 earnings may not pose any solvency risk.
“Besides, we see low probability of additional petitions as the deadline to make representations to NCLT regarding merger is over,” the report suggested.
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