Shares of Zee Entertainment Enterprises (ZEEL) rose 8% to Rs 204.25 on the BSE in intraday trade on Thursday after the company agreed to pay dues to IndusInd Bank. In addition, lenders may have decided to withdraw the bankruptcy case.

Bloomberg reported: “ZEEL has agreed to repay dues owed to IndusInd Bank as the company seeks to resolve bankruptcy proceedings against it and nears completion of a merger with a unit of the Sony Group to create a $10 billion media giant.”

Settlement of dues of about Rs 83.7 crore ($10 million) to lenders could take place as early as Friday, with the Mumbai-based bank agreeing to withdraw bankruptcy proceedings against the media company after the repayments, the news agency reported.

Last month, on February 24, the National Company Law Appellate Tribunal (NCLAT) decided to stay the execution of the National Company Law Tribunal’s (NCLT) order recognising bankruptcy proceedings against ZEEL. The case will be heard on March 29.

ZEEL’s sister company, Siti Networks, secured a loan from IndusInd Bank with ZEEL as the guarantor. Since Siti Networks could not pay, IndusInd Bank invoked the guarantee and made ZEEL a party. The amount under consideration is Rs 83.1 crore.

ZEEL is one of India’s largest listed media companies, owning and operating 49 TV channels in 11 languages ​​and the OTT app Zee5.

ZEEL has underperformed the market in the past three months, falling 19% as concerns over ongoing arbitration issues delaying the timetable for its merger with Sony Pictures Networks India Private Limited (SPNI) weighed on sentiment. In comparison, the S&P BSE Sensex has lost 6% over the period. Another reason for the stock’s underperformance is promoter debt issues and business challenges.