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Zee shares plunge 8% as promoters seeks extension of September 30 deadline

Zee shares plunge 8% as promoters seeks extension of September 30 deadline

Zee shares plunge 8% as promoters seeks extension of September 30 deadline
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By Pranati Deva  Sept 19, 2019 3:42:35 PM IST (Updated)

Shares of Zee Entertainment Enterprises (Zee) slumped over 8 percent on Thursday after sources told CNBC-TV18 that Zee promoters met MF lenders for an extension of the September 30 deadline for the repayment of debt.

Shares of Zee Entertainment Enterprises (Zee) slumped 8 percent on Thursday after sources told CNBC-TV18 that Zee promoters met MF lenders for an extension of the September 30 deadline for the repayment of debt. Fifty percent of the dues has been already paid back by the company, however, the rest is yet to be paid. The deadline falls under the standstill agreement entered in January 2019.

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Zee fell as much as 8.7 percent to Rs 306.35 per share on the BSE in intra-day deals. The stock ended 7.9 percent lower at Rs 308.8 as compared to a 1.3 percent or 470 points fall in BSE Sensex at 36,093.
The company said that it remains focused on the repayment process and the decisions taken so far have been in the interest of the lenders.
In response to CNBC-TV18, the Essel Group said, "Essel Group is in constant dialogue with the consortium of lenders. The overall asset divestment approach is in steady progress and the group remains focused on the repayment process. All decisions taken in this process so far have been in the interest of the lenders and have only been implemented after their consent. The group will continue to follow this approach with sheer focus on repayment."
The extension request came after a Delhi High Court-appointed arbitrator restricted Essel Group Chairman Subhash Chandra from selling unpledged shares of Zee till October 16.
In an ongoing dispute with Indiabulls Housing Finance over a default in repayment of loans worth Rs 200 crore, the arbitrator has asked the promoter to not sell unpledged stake directly or indirectly. The curb exempts shares already pledged with non-bank lenders and mutual funds, The Economic Times reported.
Lenders to the Essel Group had agreed to not sell the pledged shares with them till September. Earlier this month, Essel Group sold 8.7 percent stake to Invesco Oppenheimer and said it expects to complete the sale of the remaining 2.3 percent holding soon.
 
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