Zee Entertainment and IndusInd Bank have successfully resolved their payment dispute, according to recent media reports. The National Company Law Appellate Tribunal (NCLAT) has dismissed the appeal.
In March 2023, the two companies informed NCLAT that they had reached a settlement regarding the payment dispute, paving the way for the Sony deal.
This settlement is a significant development as IndusInd Bank had previously filed for insolvency proceedings against Zee in February, which could have jeopardized the merger and halted all transactions, including asset transfers.
IndusInd Bank claimed that Zee owed them Rs 83.08 crore. However, with the payment dispute resolved, the merger between Sony and Zee can proceed smoothly.
In December 2021, Sony and Zee agreed to merge their linear networks, digital assets, production operations, and program libraries. However, the merger has faced delays due to legal battles over loan defaults by a Zee group entity.
Furthermore, Subhash Chandra and Punit Goenka, both associated with Zee, were restrained by the Securities and Exchange Board of India (Sebi) on June 12 from holding directorship or key managerial positions in listed entities, citing alleged fund diversion. Chandra and Goenka challenged this ban, and the Securities Appellate Tribunal (SAT) is currently reviewing their petitions.
Despite these challenges, Goenka confidently stated in an interview with the Economic Times that the merger between Zee Entertainment and Sony would proceed as planned. He emphasized that Sony would have control over the resulting entity, and he would continue to serve as the promoter, MD, and CEO.
Last month, the NCLAT halted the insolvency proceedings against Zee Entertainment after a lawyer representing Zee informed the court that the Sony deal had received all necessary approvals but had been stalled due to the initiation of corporate insolvency proceedings.
Although the merger has taken longer than initially anticipated, it has been approved by Zee’s shareholders and India’s antitrust regulator.
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Basant Kasayap is an entertainment aficionado who delves into the glitz and glamour of the entertainment industry. From Hollywood to Bollywood to regional cinema, she offers readers an insider’s perspective on the world of movies, music, and pop culture.
