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.
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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.
