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With the approval of its board, Zee Media Corporation Limited (ZMCL) is set to go ahead with its bid for Reliance Broadcast Network Limited (RBNL), a report published in The Economic Times (ET) said. It should be noted that RBNL has been put under the corporate insolvency process by the National Company Law Tribunal (NCLT).
In its company filing, Zee Media said that a resolution had been passed on May 5, 2023, that granted approval to the company to submit its expression of interest (EOI) with the Corporate Insolvency Resolution Process (CIRP) of RBNL. This is likely to pave the way for Zee Media to acquire RBNL's business.
Earlier, NCLT had admitted RBNL's insolvency proceedings under the CIRP. Subsequently, Rohit Ramesh Mehra was appointed as the insolvency resolution professional.
The background of the RBNL insolvency
The insolvency proceedings began when IDBI Trusteeship Services Ltd filed a petition with the NCLT about RBNL being unable to repay its dues of over Rs 174 crore.
In response to the IDBI petition, the company argued that this tribunal (the Mumbai bench of NCLT) lacks jurisdiction since the parties have conferred a nonexclusive jurisdiction to the Tribunals in New Delhi. RBNL had said, “The petitioner (IDBI Trusteeship) has not provided any particulars of the claim of Rs. 174 crore...the alleged amount in default is in the nature of damages and penal interest which is impermissible under the Code.”
According to RBNL's official website, the company owns BIG FM, one of the largest radio networks in the country which operates 58 stations reaching more than 1200 towns and 50,000 plus villages. The radio network reaches 450 million Indians across the country. It was launched in 2006.
