Axis Finance approaches insolvency professional to stall Zee-Sony deal: Report
Raj Kamal Saraogi has been asked by the non-banking finance company, stating that Essel Mauritius' non-compete agreement with SPE Mauritius Investments is against an SC order of August 2022
Axis Finance Ltd has reportedly approached Raj Kamal Saraogi, an insolvency professional overseeing proceedings against Subhash Chandra to stall the Zee-Sony deal with Bangla Entertainment.
The report says that the non-banking arm of Axis, in its official communication to Saraogi, stated that Chandra's Essel Mauritius has entered into a non-compete agreement with SPE Mauritius Investments, which is a Sony company as part of their merger deal. Axis Finance pointed out that the agreement is at loggerheads with a Supreme Court order of August 2022.
As per the agreement, SPE Mauritius Investments will pay a non-compete fee of Rs 1100 crore to Essel Mauritius.
The news report also says that the SC has restricted Chandra from alienating or disposing of any assets or legal rights or beneficial rights.
Saraogi was appointed by National Company Law Tribunal (NCLT), New Delhi, to supervise the insolvency resolution process against Chandra on the basis of an appeal filed by Indiabulls Housing Finance Ltd on May 30.
While Zee, Sony and Bangla Entertainment have filed an application for NCLT's approval for their merger deal, Axis said it has filed an intervention application in the NCLT against the move.
Zee Group has two weeks to file a reply. The appeal is listed for hearing on January 16, according to the report.
The court has granted two weeks to Zee Group entities to file a reply. Rejoinder can be filed within two weeks thereafter. The application is listed for hearing on January 16.
