Media reports published yesterday stated that Zee Entertainment Enterprises Ltd. has agreed to repay dues owed to IndusInd Bank Ltd. as the company seeks to resolve insolvency proceedings initiated against it and inch closer to completing a merger with a Sony Group unit to create a $10 billion media giant.

IndusInd Bank had approached the bankruptcy court in February, seeking to start insolvency proceedings against Zee, a move which could have threatened the merger by stopping all transactions, including asset transfers.

The National Company Law Appellate Tribunal had reportedly halted the insolvency proceedings against the media company last month.

Offering clarification on the said media reports, ZEEL announced that it has been exploring several strategies, including settlement, in relation to the ongoing dispute mentioned in the news report.

However, there is no clarity at this stage as to which resolution or strategy the company will finally pursue, much less the timing of any such strategy. Accordingly, ZEEL believes that the news report is speculative in nature.

ZEEL is a media & entertainment company offering entertainment content to diverse audiences. It is present across broadcasting, movies, music, digital, live entertainment, and theatre businesses, both within India and overseas.

The company's consolidated net profit slumped 91.9% to Rs 24.31 crore in Q3 FY23 as against Rs 298.73 crore recorded in Q3 FY22. Revenue from operations declined marginally to Rs 2,111.18 crore in quarter ended 31 December 2022 from Rs 2,112.64 crore posted in the same period a year ago.

The scrip fell 1.74% to currently trade at Rs 202.95 on the BSE.