VTB Capital enforces certain securities rights granted to Zee lenders

VTB Capital, an arm of the Russian financial services house VTB Group, on Monday said it has enforced certain securities rights granted to the lenders to the promoters of Zee Entertainment Enterprises in order to protect the interest of the lenders in accordance with the terms of the financial arrangements.

“This action included obtaining certain lender protection rights in Essel Media Venture and thereby securing the right to potentially monetize, if required, 10.71 per cent stake in Zee held by Essel Media Venture,” VTB said in an exchange disclosure.

On October 5, ZEE managing director Punit Goenka had said that none of ZEE’s shares was pledged to VTB Capital in the structured arrangement inked in September 2017 and that the loan amount was always included in the total loan against shares disclosed to the market. Goenka said after the sale of 8.7 per cent stake to financial investor Invesco Oppenheimer and recent sell-off by some lenders, the promoters now owned around 22 per cent in the company.