Zee Entertainment, NCLT Mumbai
Zee Entertainment Enterprises Limited has approached the National Company Law Tribunal (NCLT) in Mumbai to enforce a $10 billion merger scheme with Sony Pictures Network India.
The merger scheme between the two had been announced on December 22, 2021, but was called off by Sony Pictures recently.
Zee, however, has sought enforcement of the scheme, which the tribunal had approved in August 2023, despite opposition from creditors like Axis Finance, JC Flower Asset Reconstruction Co, IDBI Bank, Imax Corp and IDBI Trusteeship.
On January 22, 2024, Sony Pictures Networks India (now known as Culver Max Entertainment) issued a notice to Zee terminating the merger.
Sony called off the merger after claiming that the two sides could not reach an agreement within a deadline that was set in December 2021.
In a disclosure before the Bombay Stock Exchange, Zee claimed to have replied to the termination notice, specifically denying any breach of its obligations. It reiterated its compliance with its obligations in good faith.
“Culver Max and Bangla Entertainment Pvt Ltd (BEPL) is in default of their obligations to give effect to and implement the Scheme, sanctioned by the NCLT. The Company has called upon Culver Max and BEPL to immediately withdraw the termination and confirm that they will perform their obligations to give effect to and implement the Merger Scheme, sanctioned by NCLT,” the disclosure stated.
Zee accordingly filed a petition before NCLT Mumbai seeking directions to implement the merger scheme.
The petition is yet to be finally numbered by the NCLT Registry and will be listed for hearing in due course.
Zee has also initiated appropriate legal action to contest claims made by Culver Max in arbitration proceedings before the Singapore International Arbitration Centre (SIAC).
A team from Cyril Amarchand Mangaldas (CAM) headed by Managing Partner Cyril Shroff and Partners L Vishwanathan and Indranil Deshmukh is representing Zee.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
