Firstly, it is not Zee debt but the debt of the Essel Group, which is the flagship group of Subhash Chandra, who is also the promoter of the entire group. You are right that the promoters have started the debt repayment to the NBFCs and to the mutual funds, although there is still some way to go.

Last week, the group had announced that Subhash Chandra had repaid around Rs.4400 crore out of its debt owed to mutual funds largely raised through the loan against structures. This is just a start towards repaying the Rs.17,000 crore owed to mutual funds. Let us quick look back at the details of the case.

Major mutual funds in India like HDFC, Birla and Kotak had asked investors to roll over their FMPs due to a liquidity crunch at one of the bond issuers, group companies of the Essel group. These bonds were backed by the pledge of shares given by Subhash Chandra, the promoter of the group. Therefore, this was promoter funding with inadequate collateral. That means; the MFs did not even have the luxury of selling the shares in the market to get their funds released. Shares were already down 30%, which means the FMPs would have ended up with a major gap. It was during this period that the mutual funds signed a standstill agreement with the Essel Group. Under the agreement, Essel group promoters would sell their holdings in Zee and its group companies to repay the debt before the end of September. Mutual funds had committed not to sell pledged shares of the Zee group till September 30th.