Bringing a sigh of relief to Zee Entertainment shareholders, the National Company Law Appellate Tribunal (NCLAT) said it had closed the insolvency proceedings against the company after payment to creditors.

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NCLAT recorded that all payments were made to IndusInd Bank by June 30, while IndusInd Bank said all payments had been made as per terms agreed upon. The stock jumped over 2 percent in trade, cheering this announcement on July 3 morning.

IndusInd Bank had earlier moved National Company Law Tribunal (NCLT) Mumbai, seeking insolvency proceedings against Zee. The first tranche of the total dues that IndusInd Bank had claimed was paid in the last week on March 2023. As per IndusInd Bank’s plea, Zee had to make a payment of nearly Rs 84 crore in the case related to Siti Networks.

Zee was a party to the Debt Service Reserve Account (DSRA) Guarantee Agreement entered into with IndusInd Bank for the term-loan facility advanced to another Essel Group firm, Siti Networks Ltd.

SEBI had issued interim order alleging fund siphoning by Zee promoters. It also barred Subhash Chandra and Punit Goenka from holding board or key managerial positions in any listed company. Goenka was earlier decided as the MD and CEO of the merged entity. The company has challenged SEBI’s order at the Securities Appellate Tribunal (SAT) and the case hearing is on June 26.