On Wednesday, the Bombay High Court dismissed a review plea brought by the proprietors of Zee Entertainment Enterprises Ltd, which challenged a December 2023 debt default decision. A detailed order on the subject is pending.
Justice Abhay Ahuja was considering a case filed by Zee promoters Cyquator Media, Essel Corporate LLP, and Direct Media Distribution Ventures, who claimed the judgment would cause them "grave prejudice".
Justice Abhay Ahuja was considering a case filed by Zee promoters Cyquator Media, Essel Corporate LLP, and Direct Media Distribution Ventures, who claimed the judgment would cause them "grave prejudice".
In December 2023, the Bombay High Court ordered Cyquator Media to deposit ₹61.64 crore after defaulting on repayments to Axis Finance, a non-banking subsidiary of Axis Bank. The review petition stated that Axis Finance initiated the litigation to push them into paying money they did not owe, and that the claim was not maintainable.
Axis Finance filed a complaint in the high court to collect a ₹100 crore term loan given to Cyquator Media under agreements inked in June 2018. The loan was for three years, with an annual interest rate of 10.35%. Any payment delays or defaults would result in an extra 2% interest per year.
Cyquator began defaulting on interest payments in September 2019 and has defaulted on many times despite repeated requests, according to Axis Finance. It also alleged Cyquator continued to pledge shares in favour of other lenders and creditors while repeatedly failing to meet its obligations to Axis. "It is submitted that this demonstrates the company's mala fides and clear lack of intention to rectify defaults towards the loan account of the Axis," Axis Finance said in a statement.
MDP and Partners' counsel Karl Tamboly, Hrushi Narvekar, and Niyati Merchant represented Axis Finance, while ANB Legal represented the Zee promoters.
Restructuring
Last week, Zee Entertainment Enterprises Ltd board of directors approved a new organizational framework proposed by Managing Director and CEO Punit Goenka.
Goenka, who will take direct command of the domestic broadcast business, has advocated leveraging synergies across the major business categories of broadcast, digital, movies, and music.
The new structure, which takes effect immediately, will see Siju Prabhakaran, who previously oversaw the south cluster of channels, take on extra responsibility for the west cluster and report to Goenka.
Samrat Ghosh, who previously oversaw the east cluster of channels, will take on additional responsibilities for the north and premium clusters, while Ruchir Tiwari will continue to lead the Hindi movies cluster.
Vishnu Shankar will continue to head &TV and the free-to-air segment, while Ashish Sehgal will be in charge of integrated advertising sales for the broadcast and digital businesses, maximizing value for clients while maintaining a sharp emphasis on profitability. Everyone will report to Goenka.
