NCLT verdict on ZEE-Sony merger today
The tribunal reserved its order on July 10 after the arguments were concluded by all parties
The National Company Law Tribunal (NCLT) will pronounce the much-awaited verdict on the merger of Zee Entertainment Enterprises Ltd (ZEEL) and Culver Max Entertainment Pvt Ltd (Sony Pictures) today.
The tribunal reserved its order on July 10 after the arguments were concluded by all parties.
Lenders like IndusInd Bank Ltd and Axis Bank moved the tribunal against the ZEE-Sony merger, seeking that ZEEL cleared its dues before the merger.
Axis is seeking Rs 150 crore for money owed by Essel Group companies — Primat Infrapower & Multiventures Private Limited and Cyquator Media Services.
Zee Entertainment had stood as a guarantor of a loan worth Rs 150 crore given by IndusInd Bank to Siti Networks, which is an Essel group company. NCLT has also admitted a separate plea to initiate insolvency proceedings against Siti.
In December 2021, ZEEL and Sony Pictures reached an agreement to combine their businesses and approached the NCLT for approval.
During the hearings, Zeel's advocate informed the court that the scheme of arrangement between ZEEL and Culver Max Entertainment (Sony) has been approved by 99.97% of shareholders and the regulatory bodies.
End of May, the National Company Law Appellate Tribunal (NCLAT) had set aside the NCLT order directing the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) to review their initial approvals for the merger.
On 11 May, the NCLT had in its order directed the National Stock Exchange and Bombay Stock Exchange to reconsider their approvals, reassess and validate the clauses of the merger.
Once the verdict is out, ZEE shall get the physical copy of the order in 15 days and then file with ROC for the merger of Zee-Sony. Separately, it would go to SEBI for the de-listing of Zee shares and re-listing of the merged entity. Post NCLT approval, the process shall take 2.5-3.5 months, a report from Dolat Capital said.
