Disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015
Awaiting price reaction for this filing.
Aditya Birla Finance Limited (ABFL) had filed arbitration against Zee Entertainment (ZEEL) seeking to enforce a Letter of Comfort allegedly given by ZEEL in connection with a ₹134 Crore term loan ABFL had extended to Siti Networks. ABFL was asking for roughly ₹174.57 Crore from ZEEL or a refund of ₹108 Crore that Siti had paid ZEEL in FY2020-21. ZEEL had also filed a counter-claim of ₹15 Crore. In the Final Award dated 12 May 2024, the Arbitral Tribunal rejected all of ABFL's claims against ZEEL, clearing ZEEL of any liability in this matter. ZEEL's counter-claim was left open, with both parties free to pursue remedies before the National Company Law Appellate Tribunal (NCLAT).
Positive for shareholders — a major contingent liability of up to ~₹175 Crore has been dismissed, removing overhang on the stock. The open counter-claim route at NCLAT means ZEEL may still try to recover ₹15 Crore, but the immediate risk from this dispute is now off the table.