Sony has sought $90 million termination fee, evoked arbitration: ZEEL
ZEEL has denied assertions raised by Culver Max and BEPL on the alleged breaches under the terms of the MCA, including their claims for the termination fee
ZEE Entertainment Enterprises Ltd (ZEEL) has informed BSE that Culver Max Entertainment Pvt. Ltd. (formerly Sony Pictures Networks India) is seeking a termination fee of USD 90,000,000 on account of alleged breaches by ZEEL of the terms of MCA, invoking arbitration and seeking interim reliefs against ZEEL.
Zee's statement says, “The communications received from Culver Max Entertainment and Bangla Entertainment Pvt. Ltd on January 22, 2024, purporting to terminate the merger co-operation Agreement dated December 21, 2021 (MCA), and seeking a termination fee of USD 90,000,000 (United States Dollars Ninety Million) on account of alleged breaches by ZEEL of the terms of MCA, invoking arbitration and seeking interim reliefs against ZEEL.”
ZEEL categorically denies all the assertions raised by Culver Max and BEPL on the alleged breaches under the terms of the MCA, including their claims for the termination fee.
The Board of Directors noted that all efforts and steps were taken by ZEEL in line with the Merger Cooperation Agreement, approved by its shareholders and all regulatory authorities. ZEEL has consistently worked towards the implementation of the mentioned scheme in the interest of the shareholders. ZEEL also held several deliberations and good faith negotiations with Culver Max and BEPL, with a view to consider an extension of the merger completion timeline, that did not materialise.
(Compiled by Sonam Saini and Aditi Gupta)
