“The company is more than 30 days behind payment of principal and interest amount of Rs 404 crore”, Siti Networks informed exchanges on October 7. The Company is in discussions with its bankers for restructuring of its debt obligations, it said.
“Given that legality of corporate guarantee provided by Zee, we believe Zee will have to honour the agreement and provide partial default amount. This is negative on the sentimental as well as corporate governance front,” ICICI Securities said in a note.
Meanwhile, on August 7, rating agency Brickwork Ratings India Private Limited ('Brickwork') had downgraded the rating of the company’s 6 per cent Cumulative Redeemable Non-Convertible Preference Shares & the Issuer rating. The downgrade in the rating factors decline in profitability and margins for the year ended FY20, reported loss at the operating and net level for Q4FY20 and weakening credit profile, ZEE said in a exchange filing.