Almost a month after a Mumbai bench of National Company Law Tribunal (NCLT) approved the merger scheme of media conglomerates ZEE and Sony, IDBI Bank has challenged the order before the appellate tribunal in New Delhi.
IDBI Bank, one of the lenders or creditors of Zee Entertainment Enterprises Limited (ZEEL) whose objections were dismissed by NCLT on August 10, have appealed before the NCLAT in the national capital.
The same was told by ZEEL to Bombay Stock Exchange (BSE) on Tuesday through a letter that read, “Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time (Listing Regulations), this is to intimate you that the Company has been served with an appeal on behalf of IDBI Bank Limited against the Company before the NCLAT, Delhi, challenging the order dated August 10, 2023 passed by NCLT, Mumbai Bench approving the composite scheme of arrangement amongst Zee Entertainment Enterprises Limited, Bangla Entertainment Private Limited and Culver Max Entertainment Private Limited (formerly known as Sony Pictures Networks India Private Limited).”
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.
