ZEEL files application seeking overturn of NCLT's merger order
Zee's latest filing, dated August 29, 2024, requests the NCLT to recall this order, signaling potential hurdles in the merger process with Sony
Zee Entertainment Enterprises Ltd. (ZEEL) has filed an application with the National Company Law Tribunal (NCLT), Mumbai, to overturn the order that sanctioned its merger with Culver Max Entertainment Private Limited (formerly known as Sony Pictures Networks India Private Limited).
The original NCLT order, dated August 10, 2023, had approved the merger between ZEEL, Bangla Entertainment Private Limited (BEPL), and Culver Max Entertainment (CME). However, Zee's latest filing, dated August 29, 2024, requests the NCLT to recall this order, signaling potential hurdles in the merger process.
In addition, on August 30, 2024, Zee withdrew its application and rights to file claims or counterclaims before the arbitral tribunal in the arbitration proceedings related to the merger cooperation agreement dated December 22, 2021. Both CME and BEPL have also withdrawn their rights to file claims or counterclaims in the arbitration proceedings, further complicating the merger's progress.
Due to these withdrawals, the merger scheme, as originally envisioned, cannot be implemented.
On August 27, ZEEL, Culver Max Entertainment Pvt. Ltd., and its group company Bangla Entertainment Pvt. Ltd. (BEPL) reached a comprehensive non-cash settlement, amicably resolving all disputes related to the Merger Co-operation Agreement and the Composite Scheme of Arrangement. As part of the settlement, the companies mutually agreed to withdraw all respective claims against each other in the ongoing arbitration at the Singapore International Arbitration Centre and all related legal proceedings initiated in the NCLT and other forums.
