Zee Entertainment Enterprises has entered into a one-time settlement with Standard Chartered Bank, on the loan defaulted by Siti Networks, a multi-system operator promoted by the Essel Group. 

In an exchange filing on Thursday, Zee reported “that Standard Chartered Bank (the bank) had sanctioned certain credit facilities to Siti Networks (the Borrower) which was inter-alia secured by DSRA support and undertaking of the company.”

The filing added, “Since, the borrower has defaulted in its debt repayment obligations to the bank, the company has entered into one-time settlement agreement with the bank in respect of DSRA claims/undertaking in the interest of amicably resolving the issues between the parties. There is no impact on the financial position of the company.”

This news comes after Zee Entertainment has commenced settling its pending dues with various entities such as IndusInd Bank, Axis Bank, Indian Performance Rights Society, etc in order to not jeopardise the forthcoming merger with the media conglomerate Culver Max owned by Sony Corporation. 

Zee had announced earlier in March that the Indian Performing Rights Society (IPRS) — a non-profit society comprising authors, composers and music publishers — has also withdrawn its insolvency proceedings against the company. Zee and IPRS had reached a settlement earlier this month on the issue of royalty payments worth ₹211.41 crore payable by Zee.

Banks such as IndusInd and Axis, who had initiated insolvency proceedings against Zee due to non-payment of dues by the Essel-owned MSO, have also withdrawn these proceedings from the NCLT, once Zee started the settlement discussions on this matter. Zee declined to comment on businessline’s query on when both sides will reach on a settlement. 

Zee also did not disclose the settlement amount paid by the company to Standard Chartered.