The Bombay Excessive Court docket on Wednesday dismissed a overview petition filed by the promoters of Zee Leisure Enterprises Ltd, difficult a December 2023 order in a mortgage default case. An in depth order on the matter is awaited.
Justice Abhay Ahuja was listening to the petition filed by Zee promoters Cyquator Media, Essel Company LLP and Direct Media Distribution Ventures, who claimed the order would trigger them “grave prejudice”.
In December 2023 the Bombay Excessive Court docket directed Cyquator Media to deposit ₹61.64 crore after it defaulted on repayments to Axis Finance, the non-banking subsidiary of Axis Financial institution. The overview petition mentioned Axis Finance had filed the swimsuit to stress them into paying cash they did not owe it, including that the swimsuit was not maintainable.
Additionally learn: Bombay HC asks Zee promoter to deposit ₹61.6 crore over default to Axis Finance
In its swimsuit within the excessive courtroom, Axis Finance had mentioned it was seeking to get well a time period mortgage of ₹100 crore it gave Cyquator Media via agreements signed in June 2018. The mortgage was for 3 years and carried an curiosity of 10.35 % a yr. Any delay or default in funds would appeal to an extra curiosity of two% a yr.
In September 2019, Cyquator began to default on curiosity funds and, regardless of repeated requests, defaulted on a number of events, Axis Finance mentioned. It additionally claimed Cyquator continued to pledge shares in favour of different lenders and collectors whereas persistently defaulting on its obligations in the direction of Axis. “It’s submitted that this demonstrates the corporate’s mala fides and clear lack of intention to rectify defaults in the direction of the mortgage account of the Axis,” Axis Finance mentioned.
Counsels Karl Tamboly, Hrushi Narvekar and Niyati Service provider of MDP and Companions represented Axis Finance, whereas ANB Authorized appeared for the Zee promoters.
Restructuring
Final week, Mint reported that Zee Leisure Enterprises Ltd’s board of administrators has endorsed a brand new organisational framework proposed by managing director and CEO Punit Goenka.
Goenka, who will assume direct cost of the home broadcast enterprise, had proposed to leverage synergies among the many core enterprise segments which embody broadcast, digital, films and music.
The brand new construction, efficient instantly, will see Siju Prabhakaran, who has led the south cluster of channels take extra accountability for the west cluster, and report back to Goenka.
Additionally learn: Zee sees one other exit
Samrat Ghosh, who has led the east cluster of channels, will take extra accountability for north and premium clusters, whereas Ruchir Tiwari will proceed to guide the Hindi films cluster.
Vishnu Shankar will proceed to guide &TV and the free-to-air section, and Ashish Sehgal shall be liable for built-in commercial gross sales for the published and digital enterprise, to maximise worth for the advertisers with a pointy concentrate on profitability. All of them will report back to Goenka.
Additionally learn: Zee-Sony deal: Zee withdraws merger implementation utility from NCLT
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Revealed: 24 Apr 2024, 04:07 PM IST
