Artistes’ body to withdraw insolvency plea against Zee Entertainment

Zee Entertainment Enterprises Ltd on Monday said it has entered into a settlement agreement with the Indian Performing Right Society (IPRS) as per which the artistes' body has agreed to withdraw its insolvency petition filed against the company.
"In furtherance of the same, by this communication, we wish to update you that the Company and IPRS have entered into a settlement agreement by which all disputes and claims have been settled between the Company and IPRS and accordingly IPRS has agreed to withdraw the aforesaid insolvency petition filed by them," the firm said in a regulatory filing.

Though ZEEL has not shared the terms and conditions of settlement but said it is "as per the settlement agreement entered into by the Company and IPRS.

"There is no penalty paid and no material impact on the financial position of the Company," it said.

The IPRS had filed a petition against Zee in the National Company Law Tribunal (NCLT) claiming a default of Rs 211.4 crore in music royalty payments.

IPRS, which protects the interests of music artistes, had claimed that the media conglomerate has defaulted on royalty payable for utilisation of “literary and musical works.

Earlier on February 24, the National Company Law Appellate Tribunal (NCLAT) stayed the insolvency proceedings initiated against ZEEL.

Admitting a petition filed by ZEEL Managing Director and chief executive Punit Goenka, the appellate tribunal issued notices to private sector lender IndusInd Bank and the interim resolution professional directing them to file a reply in two weeks.

On February 22, the Mumbai bench of the National Company Law Tribunal (NCLT) had admitted a plea filed by IndusInd Bank to initiate insolvency proceedings.

It had also appointed an interim resolution professional after suspending the board.

The NCLAT order was a major reprieve for ZEEL, which is merging with rival Culver Max Entertainment, formerly known as Sony Pictures Networks India, creating India''s biggest media empire.

The company has received necessary approvals from shareholders, creditors, bourses and CCI and a final go-ahead from NCLT is awaited.

(With inputs from PTI)