Axis Finance moves NCLAT against NCLT order approving Zee-Sony merger

Axis Finance has on Thursday appealed in the National Company Law Appellate Tribunal (NCLAT) against the Mumbai bench of NCLT’s order approving the merger of media conglomerates ZEE and Sony. 

Intimating the Bombay Stock Exchange (BSE), ZEEL said, “The Company has been served with an appeal on behalf of Axis Finance Limited against the Company before the NCLAT, Delhi, challenging the order dated August 10, 2023, passed by NCLT, Mumbai Bench, dismissing the Interlocutory Application and approving the composite scheme of arrangement amongst Zee Entertainment Enterprises Limited, Bangla Entertainment Private Limited and Culver Max Entertainment Private Limited (formerly Sony Pictures Networks India Private Limited).”

Axis Finance is one of the lenders or creditors of Zee Entertainment Enterprises Limited (ZEEL) whose objections were dismissed by NCLT on August 10.

This is the second bank that has moved the NCLAT after IDBI Bank last week approached the appellate tribunal.

On August 10, the Mumbai Bench of NCLT had given its nod to Zee's $10 billion merger with Culver Max. It had dismissed the objections raised by lenders including IDBI Trusteeship, IDBI Bank, Axis Finance, JC Flowers Asset Reconstruction Co and Imax Corp.

NCLT had cleared the decks for the merger of ZEE and Sony after a roller-coaster ride of two years.

The journey of the merger began in December 2021 with ZEEL’s Board of Directors considering and approving the Scheme of Arrangement under Sections 230 to 232 of the Companies Act, 2013 (Scheme), whereby the Company and Bangla Entertainment Private Limited, an affiliate of Culver Max Entertainment Pvt Ltd (formerly known as Sony Pictures Networks India Private Limited), shall merge in Culver Max Entertainment Pvt Ltd.

After getting the requisite approvals and NOCs from shareholders and certain regulators, including SEBI and the Competition Commission of India (CCI), the company filed a petition with NCLT for approval of the scheme.

On July 11, the tribunal had reserved its order on the merger following hearing objections from several creditors, including Axis Finance, JC Flower Asset Reconstruction Co., IDBI Bank, IDBI Trusteeship and Imax Corp.