ZEE withdraws application before NCLT seeking implementation of merger with Sony Pictures

The company decided that it will pursue its claims against Sony before other forums including Singapore International Arbitration Centre.
Zee Entertainment, NCLT Mumbai
Zee Entertainment, NCLT Mumbai
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ZEE Entertainment Enterprises Ltd. (ZEE) has decided to withdraw its merger application filed before the National Company Law Tribunal (NCLT) at Mumbai seeking implementation of its proposed merger with Sony Pictures Networks (now Culver Max).

The merger between Sony and Zee was announced on December 22, 2021. However, it was called off by Sony Pictures.

In the meantime, Sony approached the Singapore International Arbitration Centre (SIAC) on February 4 seeking directions to prevent Zee from seeking legal remedies from other legal forums including the NCLT.

After the SIAC rejected Sony's plea for urgent relief, Mad Men Film Ventures, a shareholder of Zee, approached the NCLT seeking an urgent order to ensure that any order passed by any other forum concerning the Zee-Sony merger would be subject to the orders of the NCLT.

Zee thereafter approached NCLT Mumbai seeking the enforcement of the $10 billion merger scheme, which the tribunal had approved in August 2023 despite opposition from creditors like Axis Finance, JC Flower Asset Reconstruction Co, IDBI Bank, Imax Corp and IDBI Trusteeship.

However, the company has now decided to withdraw the plea.

In a filing before the Bombay Stock Exchange, the company explained its decision to withdraw the application filed on January 24 this year.

This decision will also enable the Company to pursue growth and evaluate strategic opportunities to generate higher value for all shareholders....This decision to withdraw the implementation application will enable the Company to continue to aggressively pursue all its claims against Sony in the ongoing arbitration proceedings at the Singapore International Arbitration Centre (SIAC) and in other forums,” the filing said.

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