ZEE withdraws Sony Pictures’ merger application before NCLT, will pursue SIAC claims

ZEE Entertainment Enterprises Ltd. has withdrawn its merger application filed before the National Company Law Tribunal Mumbai Bench seeking implementation of its proposed merger with Sony Pictures Networks (now Culver Max).

The merger between Sony and Zee was announced on December 22, 2021. However, it was called off by Sony Pictures.

In the meantime, Sony approached the Singapore International Arbitration Centre (SIAC) on February 4 seeking directions to prevent Zee from seeking legal remedies from other legal forums including the NCLT.

After the SIAC rejected Sony’s plea for urgent relief, Mad Men Film Ventures, a shareholder of Zee Entertainment Enterprises on January 24 filed an application seeking directions on the implementation of the Composite Scheme of Arrangement between ZEE, Culver Max Entertainment Pvt. Ltd. and Bangla Entertainment Pvt. Ltd. The company thereafter approached NCLT Mumbai seeking the enforcement of the $10 billion merger 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.

The Board of Zee Entertainment Enterprises yesterday, April 16, withdrew the merger implementation application filed before NCLT.

According to the company filing, the decision to withdraw the implementation application, based on legal advice, will enable it to continue to aggressively pursue all its claims against Sony in the ongoing arbitration proceedings at the SIAC and other forums.
BCS Bureau