After ‘understanding’ with lenders, Zee shares bounce back by 16.64 per cent

Shares of other Zee group companies however, continued to face selling pressure on Monday also, with Zee Media Corporation plunging 19.68 per cent and Zee Learn tanking 7.80 per cent at close of trade on the BSE. The Essel Group on Sunday said that it has “arrived at an understanding” with its lenders that have pledge on shares held by the promoters, not to be declared defaulter following the steep fall in share prices of the group’s listed entities such as Zee Entertainment and Dish TV.

In a statement issued on Sunday, the Essel Group said that the promoters of Essel Group had a meeting with the lending entities comprising mutual funds, NBFCs and banks, in which it was decided that there would not be any event of “default declared due to the steep fall in price”.

It said there will be synergy and co-operation, amongst lenders leading to a unified approach, and the lenders drew comfort from reiteration by promoters for a speedy resolution through a strategic sale in a time bound manner.

Zee Entertainment Enterprises (ZEEL) which fell 26 per cent on Friday, said Nityank lnfrapower and Multiventures is an “independent company and does not belong to Essel Group”. Its DTH arm Dish TV has also denied any transaction with Nityank in its scheme of merger of Videocon D2H with the company. Lenders have offered a 90-day period to Zee Entertainment to close a deal with a strategic partner. Until this, they would not invoke the pledged shares. Almost 97 per cent (in value terms) of lenders have agreed to the terms and talks are ongoing with the rest.