HC refers Siti Networks' Rs 150-cr loan default case to arbitration

The Delhi High Court has referred to arbitration a ₹150-crore loan default dispute between Aditya Birla Finance and Siti Networks along with Zee Entertainment Enterprises that stood guarantor for the loan. It also appointed former Supreme Court judge Justice LN Rao as the sole arbitrator. In 2017, Aditya Birla Finance had extended a term loan of ₹150 crore to Siti Networks under a credit arrangement letter. According to the lender, the interest rate was reduced from 16% per annum to 13% on the condition that Siti would reduce the outstanding loan to ₹75 crore before 2018 and Zee, a group company of the cable operator, would stand as a guarantor for the loan.