ZEEL Managing Director and chief executive, Punit Goenka.

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Zee Entertainment Enterprises Limited (ZEEL) shares increased 8.28% during intraday trading on Thursday after the business announced it would pay back debts owing to IndusInd Bank Ltd.

Insolvency proceedings brought against the media company, according to a Bloomberg story, are being resolved as the company moves closer to merging with a Sony Group subsidiary to form a $10 billion media conglomerate.

Around 83.7 crore in unpaid debt to the private lender could be settled as soon as this Friday, and IndusInd Bank has promised to drop its insolvency case against Zee provided the debt is paid.

The insolvency case against ZEEL had previously been halted by the National Company Law Appellate Tribunal (NCLAT).

The issue relates to a default of 89 crore claimed by IndusInd Bank against Siti Networks, the multisystem operator arm of the Essel Group, for which ZEEL was a guarantor.

For ZEEL, which is merging with rival Company Max Entertainment, formerly known as Sony Pictures Networks India, the NCLAT order represents a significant reprieve.