Zee says consent secured with lenders

New Delhi, Feb 3 (IANS) Responding to IANS report headlined 'In crackdown against Zee, SEBI summons MF CEOs and rating agency chief for quizzing,' Zee accepted that the CEOs have been called at 9.15 a.m. by member SEBI Madhabi Puri Buch.

Zee stated in a press release that Essel Group's management today secured a formal consent with lenders, which are having a pledge on shares held by the promoters in ZEE Entertainment Enterprises Ltd. and Dish TV India Ltd.

In its official statement issued on January 27, the Group had earlier confirmed that an understanding with the lenders was achieved, and the same has been finalized today.

The release said as per the consent, the lenders have agreed that there will not be any event of default declared till September 30
2019, due to the movement in the stock price of Essel Group's mentioned listed corporate entities.

"This consent provides the required amount of time for the group's management, to complete the strategic sale process of its key assets without any compromise on the value," the release said.

"During the meeting, the management of Essel Group once again reassured the lending entities, that within the mentioned time-frame, a complete resolution will be achieved, leveraging the stake sale process. The lenders have showcased complete co-operation and have agreed to support Essel Group's management, together as one team," it said.

The release quoted chairman of Essel Group, Subhash Chandra, as saying, "I am glad that the formal consent with the lenders has been achieved. For us, while their assurance given last week itself was more than enough, the formal consent seals and justifies their belief and trust in us and the intrinsic value of our assets".