Private sector lender YES Bank has filed a plea to initiate insolvency proceedings against Zee Learn.
“…this is to inform you that a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 has been filed by YES Bank Limited to initiate Corporate Insolvency Resolution Process (CIRP) of the Company, before the Hon’ble National Company Law Tribunal, Mumbai,” the company said in a stock exchange filing on Monday.
YES Bank has claimed that the total amount in default with respect to the financial facility is ₹468 crore.
“However, the company is compiling information to verify the facts claimed in the said petition filed by YES Bank,” Zee Learn further said.
A part of the Essel Group, Zee Learn has one of the fastest growing chain of K-12 schools — Mount Litera Zee School and pre-school network — Kidzee in its portfolio.
For the quarter ended December 31, 2021, it reported a consolidated net loss of ₹4.91 crore as against a net loss of Rs 19.96 lakh in the same quarter in the previous fiscal.
The development comes at a time when YES Bank is already working to recover dues from other Essel Group promoted entities including Dish TV.
While YES Bank claims it has extended loans to the tune of ₹5,270 crore to 10 different Essel Group entities, in a recent interview to BusinessLine Subhash Chandra had said Essel group owes ₹4,200 crore to the bank.