IDBI Bank challenges NCLT approval of Zee-Sony merger, citing legal concerns

Previously, the planned merger was accepted by the Mumbai bench of the National Company Law Tribunal (NCLT) accepted on August 10, 2023,

IDBI Bank has taken legal action against the recent National Company Law Tribunal (NCLT) approval of the merger between Zee Entertainment (ZEEL) and Culver Max Entertainment, previously known as Sony Pictures Networks India. The merger, if it proceeds, would create the largest media entity in India.

IDBI Bank has filed an appeal with the National Company Law Appellate Tribunal (NCLAT) to contest the NCLT's decision. This move follows the NCLT's dismissal of objections raised by several lenders of ZEEL, including IDBI Trusteeship, IDBI Bank, Axis Finance, JC Flowers Asset Reconstruction Co, and Imax Corp.

IDBI Bank is also involved in another legal matter against ZEEL, in which the NCLAT has issued a notice to the entertainment company. In that case, the NCLT rejected IDBI Bank's plea to initiate insolvency proceedings against ZEEL, citing a section of the Insolvency & Bankruptcy Code (IBC).

ZEEL and Sony Pictures announced their merger plans in December 2021 and have been seeking regulatory approvals, including from the Competition Commission of India and the Securities and Exchange Board of India, to proceed with the merger.