IDBI Bank Limited, the Financial Creditor, filed an application CP(IB) No. 107/MB-IV/2023 under Section 7 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) to initiate Corporate Insolvency Resolution Process (CIRP) against Zee Entertainment Enterprises Limited, the Corporate Debtor. The financial creditor claimed a default of Rs. 149,60,69,763.39 as of December 8, 2022, stemming from a working capital facility extended to Siti Networks Ltd. (Principal Borrower), guaranteed by Zee Entertainment. The Corporate Debtor argued that its liability was limited to the Debt Service Reserve Account (DSRA) guarantee for Rs. 50 Crores and that the invocation of the guarantee was invalid due to the recall of the entire facility and the bar under Section 10A of the IBC.
IDBI Bank Limited (Financial Creditor) filed CP(IB) No. 107/MB-IV/2023 against Zee Entertainment Enterprises Limited (Corporate Debtor) under Section 7 of the IBC, claiming a default of Rs. 149,60,69,763.39 as of 08.12.2022. The default stems from a guarantee agreement provided by Zee Entertainment for credit facilities extended to Siti Networks Ltd. (Principal Borrower). The Financial Creditor originally sanctioned INR 150 Crores to the Principal Borrower, later enhanced to INR 100 Crore and INR 200 Crore. The facilities were secured by assets of the Principal Borrower and a guarantee from the Corporate Debtor. The Corporate Debtor's guarantee was related to maintaining a Debt Service Reserve Account (DSRA). The Principal Borrower defaulted on its obligations under
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IDBI Bank Limited, the Financial Creditor, filed an application CP(IB) No. 107/MB-IV/2023 under Section 7 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) to initiate Corporate Insolvency Resolution Process (CIRP) against Zee Entertainment Enterprises Limited, the Corporate Debtor. The financial creditor claimed a default of Rs. 149,60,69,763.39 as of December 8, 2022, stemming from a working capital facility extended to Siti Networks Ltd. (Principal Borrower), guaranteed by Zee Entertainment. The Corporate Debtor argued that its liability was limited to the Debt Service Reserve Account (DSRA) guarantee for Rs. 50 Crores and that the invocation of the guarantee was invalid due to the recall of the entire facility and the bar under Section 10A of the IBC.
IDBI Bank Limited (Financial Creditor) filed CP(IB) No. 107/MB-IV/2023 against Zee Entertainment Enterprises Limited (Corporate Debtor) under Section 7 of the IBC, claiming a default of Rs. 149,60,69,763.39 as of 08.12.2022. The default stems from a guarantee agreement provided by Zee Entertainment for credit facilities extended to Siti Networks Ltd. (Principal Borrower). The Financial Creditor originally sanctioned INR 150 Crores to the Principal Borrower, later enhanced to INR 100 Crore and INR 200 Crore. The facilities were secured by assets of the Principal Borrower and a guarantee from the Corporate Debtor. The Corporate Debtor's guarantee was related to maintaining a Debt Service Reserve Account (DSRA). The Principal Borrower defaulted on its obligations under
…The Borrower defaulted…
The account of the…