Zee-Sony Merger: NCLT Greenlights Zee's Withdrawal From Implementation Application
In January, Sony ended the $10-billion merger with Zee, because Zee failed to meet certain conditions, including alleged financial mismanagement and recovering dues from related parties.
The National Company Law Tribunal in Mumbai has allowed Zee Entertainment Enterprises Ltd. to withdraw its application for implementing its merger with Culver Max Entertainment Pvt., formerly known as Sony Pictures Networks India Pvt.
Initially, Zee Entertainment Enterprises filed the application seeking to enforce the merger scheme that the Tribunal approved in August 2023. The company had sought directives for Culver to adhere to the sanctioned scheme, prevent any actions that could interfere with the merger, and form a committee with representatives from both parties to monitor the process and report to the Tribunal.
In January, Sony ended the $10 billion merger with Zee, because Zee failed to meet certain conditions, including alleged financial mismanagement and recovering dues from related parties. Consequently, Sony initiated arbitration proceedings against Zee Entertainment Enterprises under the Singapore International Arbitration Centre rules.
Despite making detailed requests before the tribunal to implement the scheme, Zee Entertainment Enterprises decided to withdraw the application, and the NCLT has now approved this withdrawal. Zee has claimed that it is taking this step to avoid multiple litigations before several forums.
In its latest order, the Tribunal has now granted Zee Entertainment Enterprises permission to withdraw its application, emphasising that it had not commented on the merits of the case, allowing both parties to pursue their legal remedies as necessary.
