BENGALURU, Feb 24 (Reuters) – Shares of Indian media firm Zee Entertainment Enterprises (ZEE.NS) prolonged their decline on Friday after insolvency proceedings have been initiated towards the corporate on account of a mortgage default.

Zee Entertainment shares fell as a lot as 5.4% in early commerce after closing down almost 4% within the earlier session.

The firm’s shares, which have misplaced about 20% up to now this 12 months, are on observe for his or her fifth straight session of losses.

Punit Goenka, chief government of Zee on Thursday challenged insolvency proceedings towards the corporate by India’s chapter court docket, and nonetheless anticipated a well timed completion of a merger with the native unit of Japan’s Sony Group Corp (6758.T).

Multiple analysts have raised considerations about potential delays as a result of insolvency continuing on the Zee-Sony merger that’s geared toward making a $10 billion media powerhouse in India.

Meanwhile, the National Stock Exchange on Thursday banned the derivatives buying and selling on Zee’s inventory efficient from April 28.

Goenka’s petition is developing for listening to on Friday morning on the National Company Law Appellate Tribunal.

Reporting by Nallur Sethuraman in Bengaluru; enhancing by Eileen Soreng

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