Zee And Sony Pictures Settle Dispute Over Failed Merger; Withdraw Claims From SIAC And NCLT
Zee And Sony Pictures Settle Dispute Over Failed Merger; Withdraw Claims From SIAC And NCLT
ZEE Entertainment Enterprises and Culver Max Entertainment (CMEPL), operating as Sony Pictures Networks India (SPNI), along with its group company Bangla Entertainment (BEPL), have announced a settlement regarding their merger agreement.
According to a press release, the companies have reached a non-cash settlement to amicably resolve all disputes related to the merger, which had been under scrutiny by various dispute forums.
As part of the settlement, both parties have agreed to withdraw all claims against each other in the ongoing arbitration at the Singapore International Arbitration Centre (SIAC) and all associated legal proceedings before the National Company Law Tribunal (NCLT) and other forums. Additionally, they will withdraw their respective composite schemes of arrangement from the NCLT and notify the relevant regulatory authorities.
The settlement terms stipulate that neither party will have any outstanding or continuing obligations or liabilities to the other.
The merger between Sony and Zee was initially announced on December 22, 2021, but was subsequently called off by Sony Pictures. Following this, Sony sought directions from the SIAC to prevent Zee from pursuing legal remedies in other forums, including the NCLT.
When SIAC rejected Sony's plea for urgent relief, Mad Men Film Ventures, a shareholder of Zee, approached the NCLT seeking an order to ensure that any decisions made by other forums regarding the Zee-Sony merger would be subject to NCLT orders.
Zee later sought the enforcement of the $10 billion merger scheme at NCLT Mumbai, which the Tribunal had approved in August 2023 despite opposition from creditors including Axis Finance, JC Flower Asset Reconstruction Co, IDBI Bank, Imax Corp, and IDBI Trusteeship. However, Zee withdrew this plea on April 7, 2024.
