Bombay High Court dismisses Zee promoters' petition against loan-default order

Justice Abhay Ahuja was proceeding a petition filed by Zee promoters Cyquator Media, Essel Corporate Llp and Direct Media Distribution Ventures, which claimed the bid would origin them “grave prejudice."

In December, the Bombay High Court directed Cyquator Media to deposit ₹61.64 crore aft it defaulted connected repayments to Axis Finance, the non-banking subsidiary of Axis Bank. The reappraisal petition said Axis Finance had filed the suit to unit them into paying wealth they didn't beryllium it, adding that the suit was not maintainable.

Also read: Bombay HC asks Zee promoter to deposit ₹61.6 crore implicit default to Axis Finance

In its suit successful the precocious court, Axis Finance said it was looking to retrieve a word indebtedness of ₹100 crore it gave Cyquator Media done agreements signed successful June 2018. The indebtedness was for 3 years and carried an involvement of 10.35 % a year. Any hold oregon default successful payments would pull further involvement of 2% a year.

In September 2019, Cyquator started to default connected involvement payments and, contempt repeated requests, defaulted connected aggregate occasions, Axis Finance said. It besides claimed Cyquator continued to pledge shares successful favour of different lenders and creditors portion persistently defaulting connected its obligations towards Axis. “It is submitted that this demonstrates the company’s mala fides and wide deficiency of volition to rectify defaults towards the indebtedness relationship of the Axis," Axis Finance said.

Counsels Karl Tamboly, Hrushi Narvekar and Niyati Merchant of MDP and Partners represented Axis Finance, portion ANB Legal appeared for the Zee promoters.

Restructuring

Last week, Mint reported that Zee Entertainment Enterprises’ committee of directors has endorsed a caller organizational model projected by managing manager and main enforcement serviceman (CEO) Punit Goenka.

Goenka, who volition presume nonstop complaint of the home broadcast business, had projected to leverage synergies among the halfway concern segments which see broadcast, digital, movies and music.

The caller structure, effectual immediately, volition spot Siju Prabhakaran, who led the southbound clump of channels, instrumentality further work for the westbound cluster, and study to Goenka.

Also read: Zee sees different exit

Samrat Ghosh, who led the eastbound clump of channels, volition instrumentality further work for northbound and premium clusters, portion Ruchir Tiwari volition proceed to pb the Hindi movies cluster.

Vishnu Shankar volition proceed to pb &TV and the free-to-air segment, and Ashish Sehgal volition beryllium liable for integrated advertisement income for the broadcast and integer business, to maximize worth for the advertisers with a crisp absorption connected profitability. All of them volition study to Goenka.

Also read: Zee-Sony deal: Zee withdraws merger implementation exertion from NCLT

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Published: 24 Apr 2024, 04:07 PM IST