Zee requests recall of NCLT order approving Sony merger

Zee Entertainment Enterprises has requested the National Company Law Tribunal (NCLT) to recall its August 10, 2023 order that approved the merger scheme involving Sony Group Corporation's Indian media units, Culver Max Entertainment and Bangla Entertainment. According to its regulatory filing, Zee submitted an application to the Mumbai bench of the NCLT on August 29, 2024.

Additionally, on August 30, Zee withdrew its application and gave up its rights to file claims or counterclaims before the arbitral tribunal in the arbitration proceedings concerning the merger cooperation agreement dated December 22, 2021.

These proceedings were initiated by Culver Max and Bangla Entertainment before the SIAC, with Zee challenging the $90 million termination fee claimed by the Sony-owned companies for the alleged non-fulfillment of the merger scheme.

"Accordingly, the scheme cannot be made effective in terms thereof," Zee informed National Stock Exchange of India.

On August 27, Zee and Sony announced that they had reached a comprehensive non-cash settlement, effectively resolving all disputes arising from their failed merger deal. In a joint statement, the companies confirmed that they had mutually agreed to withdraw all claims against each other in the ongoing arbitration at the SIAC, as well as in related legal proceedings initiated in the NCLT and other forums.