Siti Networks Limited , a player in the Indian cable TV and broadband services sector, has disclosed defaults on term loan instalments to multiple lenders in its latest SEBI compliance filing dated December 31, 2025. The company reported total outstanding claims of ₹1,500 crores as it continues to navigate through Corporate Insolvency Resolution Process (CIRP).

Default Disclosure Details

In compliance with SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/2019/140, Siti Networks reported defaults on term loan instalments with a default date of November 30, 2025. The defaults continue beyond the 30-day threshold, triggering mandatory disclosure requirements.

Lender-wise Outstanding Claims

The company's financial obligations are distributed across multiple lenders, with claims varying significantly between the initial CIRP filing and subsequent assessments:

Ongoing Insolvency Proceedings

The Corporate Insolvency Resolution Process was initiated by the National Company Law Tribunal (NCLT) Mumbai Bench on February 22, 2023, with Mr. Rohit Mehra appointed as the Interim Resolution Professional. The process has been marked by extensive legal challenges and appeals.

Key Legal Developments

• NCLAT Appeal: Ms. Shilpi Asthana, director of Siti Networks, filed an appeal against the admission order, which was initially stayed but later dismissed on August 10, 2023
• Supreme Court Proceedings: Multiple appeals are currently pending before the Supreme Court regarding financial creditor claims and payment obligations
• Stay Orders: The Supreme Court has granted stay to financial creditors from remitting amounts received during the CIRP stay period

Related Party Transactions

A significant development involves Zee Entertainment Enterprise Limited (ZEEL), whose financial creditor claim has been assigned to Vani Agencies Private Limited (VAPL) on July 2, 2024. The Resolution Professional has admitted VAPL's claim as financial debt and classified it as a related party transaction under the Insolvency and Bankruptcy Code, 2016.

Current Status and Implications

The substantial outstanding claims and ongoing legal complexities continue to pose significant challenges for Siti Networks. The company's operational capabilities remain under stress as multiple stakeholders await resolution of the insolvency proceedings. The Supreme Court's directions regarding payment restrictions to operational creditors during the CIRP stay period add another layer of complexity to the resolution process.

Siti Networks Limited has formally explained to the BSE the reasons behind the delay in submitting its financial results for the second quarter of financial year 2025-26, ended September 30, 2025. The company's response, dated December 11, 2025, addresses BSE's inquiry regarding the non-disclosure of reasons for the delayed submission.

Corporate Insolvency Resolution Process Impact

The primary factor affecting the company's financial reporting timeline is the ongoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. The CIRP was initiated by the National Company Law Tribunal, Mumbai Bench through its order dated February 22, 2023, later confirmed by the National Company Law Appellate Tribunal on August 10, 2023.

Upon admission into CIRP, the powers of the Board of Directors stand suspended, with management responsibilities transferred to the Resolution Professional. This fundamental change in corporate governance has significantly impacted the company's operational processes, including financial reporting mechanisms.

Operational Challenges and Resource Constraints

The CIRP process has created substantial operational challenges that directly affect financial statement preparation. The resolution process involves meticulous procedures including transaction audits, valuations, claim verifications, and comprehensive legal and financial assessments. These activities have absorbed considerable time and focus from the finance department, creating resource allocation challenges.

A critical development has been the resignation of several key personnel from the finance and audit teams responsible for preparing financial statements. These departures have created knowledge gaps and workflow disruptions, contributing significantly to the delay in completing the required financial documentation.

Subsidiary Company Complications

Siti Networks Limited operates with 23 subsidiary companies, adding complexity to its consolidated financial statement preparation. One subsidiary, Siti Broadband Services Private Limited, is currently undergoing its own CIRP process, creating additional complications for the parent company's reporting requirements.

The company faces delays in receiving financial statements from several subsidiary companies, which are essential for preparing consolidated financial statements. This interdependency has created a cascading effect on the overall timeline for financial reporting completion.

Timeline and Compliance Commitment

Despite these challenges, Siti Networks Limited has provided a clear timeline for resolution. The company anticipates submitting the second quarter financial results by January 31, 2026. This extended timeline allows for comprehensive review and ensures accurate representation of the company's financial status while maintaining compliance with regulatory requirements.

The company has emphasized its commitment to meeting regulatory obligations under SEBI Listing Regulations and has assured stakeholders of continued updates on progress. The management acknowledges the complexity involved in aligning financial statements with ongoing CIRP proceedings while ensuring accuracy and transparency in reporting.

Siti Networks Limited's situation highlights the significant operational and reporting challenges faced by companies undergoing insolvency resolution processes, where maintaining regulatory compliance becomes increasingly complex amid restructuring activities and resource constraints.