Siti Networks bankruptcy case: NCLT adjourns hearing to April 3

Siti Networks is a multi-system operator (MSO) promoted by the Essel Group and offers a variety of channels, including HD services, digital cable TV, and broadband services.

By  Storyboard18Mar 26, 2024 8:38 AM
Siti Networks bankruptcy case: NCLT adjourns hearing to April 3
Star had issued a disconnection notice to Siti on January 25 for non-payment of outstanding subscription dues, requiring the platform to make the payment within three weeks or face disconnection, as per reports.

The Mumbai bench of the National Company Law Tribunal (NCLT) has adjourned the hearing of an application in cable TV distribution company Siti Networks' insolvency resolution matter to April 3, ET reports. Siti Networks is a multi-system operator (MSO) promoted by the Essel Group and offers a variety of channels, including HD services, digital cable TV, and broadband services.

The report states the bench observed that various applications were pending, highlighting irregularities in the process and the change in the date of the start of the resolution process. "Hence, all the material decisions of the process and the committee of creditors would be subject to the tribunal's final order on the pending applications," the NCLT said according to the report.

The NCLT Mumbai Bench, while adjudicating an application filed in Indusind Bank Ltd. v Siti Networks Ltd., had initiated Corporate Insolvency Resolution Process (CIRP) against Zee Entertainment Enterprises Ltd, in February 2023.

Siti and Star case

In February 2024, Essel-backed Siti Networks was granted interim relief by the Mumbai bench of the NCLT, restraining Star India from disconnecting signals to the TV distribution platform until further orders.

Star had issued a disconnection notice to Siti on January 25 for non-payment of outstanding subscription dues, requiring the platform to make the payment within three weeks or face disconnection, as per reports.

Siti and Aditya Birla Finance

The Supreme Court on January 16, 2024, upheld a Delhi High Court order referring a loan dispute between Siti Network and Aditya Birla Finance to arbitration, which was a blow to Zee which had opposed being made part of the proceedings.

Zee Entertainment Enterprises Limited (ZEEL), an Essel Group company, stood guarantee to the Rs 150 crore loan that Aditya Birla Finance extended to Siti Network in 2017. ZEEL was made a party to the proceedings after Siti Network allegedly didn’t repay the loan.


Tags
First Published on Mar 26, 2024 8:38 AM

More from Storyboard18

How it Works

'No dignity': Widespread layoffs in India; lack of transparency and support leaves employees shaken

'No dignity': Widespread layoffs in India; lack of transparency and support leaves employees shaken

How it Works

EXCLUSIVE: Elections will drive exponential growth in news viewership: Havas Media's Uday Mohan

EXCLUSIVE: Elections will drive exponential growth in news viewership: Havas Media's Uday Mohan

How it Works

Bournvita among drinks to be removed from e-commerce platforms' "health drinks" section, says Govt

Bournvita among drinks to be removed from e-commerce platforms' "health drinks" section, says Govt

How it Works

How sneakers made their way into corporate culture

How sneakers made their way into corporate culture

How it Works

Gaming industry to almost double to $6 billion by 2028: Report

Gaming industry to almost double to $6 billion by 2028: Report

How it Works

OnePlus products to not be sold by retail chains starting May 1

OnePlus products to not be sold by retail chains starting May 1

How it Works

SEBI says 'no action' against Zee's Subhash Chandra until April 30

SEBI says 'no action' against Zee's Subhash Chandra until April 30

How it Works

Edtech layoffs: Scaler cuts several jobs in sales and marketing department

Edtech layoffs: Scaler cuts several jobs in sales and marketing department