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ZEE settles dispute with IPRS, insolvency petition withdraw by artist body
Leading broadcaster ZEE Entertainment Enterprises Ltd (ZEEL) on Monday said it has “mutually” settled disputes with the Indian Performing Rights Society (IPRS) and the insolvency petition filed against by the latter has been withdrawn before NCLAT.
“The Company and IPRS have mutually entered into the settlement agreement today on such agreed terms 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,” a regulatory filing by ZEEL said.
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.
Earlier this January, IPRS moved the insolvency tribunal NCLT against ZEEL claiming a default of Rs 211.41 crore.
IPRS, which is a non-profit society comprising authors, composers and music publishers, filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC) 2016, as an operational creditor claiming dues towards 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. Business Standard