Zee Entertainment, IndusInd Bank settle loan default dispute

Zee Entertainment Enterprises Ltd and IndusInd Bank Ltd told an Indian tribunal on Wednesday that they have settled a dispute over a loan default, paving the way for the media company's merger with a local unit of Sony.

IndusInd started bankruptcy proceedings against Zee Entertainment late last month over a default of Rs 83.08 crore ($10.10 million).

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Zee Entertainment challenged the move in the National Company Law Appellate Tribunal (NCLT), which put the insolvency proceedings on hold.

IndusInd Bank, on Wednesday, told the NCLT that it would also withdraw its objection to Zee Entertainment's merger with a local unit of Japan's Sony.

Zee Entertainment's shares jumped as much as 4.4 per cent to a nearly one-week high.

($1 = 82.2850 Indian rupees)