NCLT adjourns Zee Entertainment Lenders Plea Against Merger between Zee and Sony

NCLT adjourns Zee Entertainment Lenders Plea Against Merger between Zee and Sony

The National Company Law Tribunal (NCLT), Mumbai Bench adjourned the matter of Zee Entertainment lenders who filed Intervention Applications in order to prevent the proposed media and entertainment companies' merger- Zee Entertainment Enterprises Ltd (in short Zee) with Culver Max Entertainment (earlier Sony Pictures Networks India) to 2 February.

The tribunal, consisting of HV Subba Rao and Madhu Sinha, were hearing the petitions filed by the IndusInd Bank, Axis Finance Limited, IDBI Bank, and the Indian Performing Right Society (IPRS).

The IndusInd Bank, Axis Finance and IDBI Bank had sought permission to file applications to intervene in the merger scheme. It is prudent to note that the Indian Performing Right Society (IPRS), an operational creditor of Zee, is also part of the proceedings.

Arguing for ZEE, Senior Advocates Janak Dwarkadas and Navroz Seervai contended that the applications filed were to oppose the merger are tactics being used to delay the merger completion process.

According to them the key regulatory and shareholder approvals have already been received which is why these applications cannot prevent a merger from taking place. They said that the scheme has already received approval from 99.97 per cent of shareholders and all secured creditors. Further, unsecured creditors who have debt with the conglomerate had not objected. Moreover, approvals from SEBI, Stock Exchanges, the Competition Commission of India, regional director, and the official liquidator have also been received.

The counsels further stated that the scheme provides that the liabilities of ZEE will continue, and the merged entity will be liable for the disputed claim amount, the proposed merger is not fraudulent or malafide for the body of creditors.

The NCLT disposed off the two of the applications asserting them to be as infructuous, while stated that a separate application raising objections filed by one of the parties was under scrutiny by the registry.

It also posted the matter for further hearing on 2 February.