India's Zee Entertainment, IndusInd Bank settle loan default dispute

Illstration shows Zee Entertainment logo
Zee Entertainment logo is displayed in this illustration taken, September 1, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

BENGALURU, March 29 (Reuters) - Zee Entertainment Enterprises Ltd (ZEE.NS) and IndusInd Bank Ltd (INBK.NS) told an Indian tribunal on Wednesday that they have settled a dispute over a loan default, paving the way for the media company's merger with a local unit of Sony (6758.T).

IndusInd started bankruptcy proceedings against Zee Entertainment late last month over a default of 830.80 million rupees ($10.10 million).

Zee Entertainment challenged the move in the National Company Law Appellate Tribunal (NCLAT), which put the insolvency proceedings on hold.

IndusInd Bank, on Wednesday, told the NCLAT that it would also withdraw its objection to Zee Entertainment's merger with a local unit of Japan's Sony.

Zee Entertainment's shares jumped as much as 4.4% to a nearly one-week high.

($1 = 82.2850 Indian rupees)

(This story has been corrected to change abbreviation to NCLAT from NCLT in paragraphs 3 and 4)

Reporting by Nandan Mandayam in Bengaluru; Editing by Dhanya Ann Thoppil and Savio D'Souza

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