Parties Agree to Withdraw All Claims from SIAC and NCLT, Settling Disputes Over $10 Billion Merger
Zee Entertainment Enterprises and Culver Max Entertainment (CMEPL), operating as Sony Pictures Networks India (SPNI), along with its group company Bangla Entertainment (BEPL), have reached a settlement concerning their ongoing merger. The settlement resolves all disputes related to the merger, which had been under arbitration and litigation in various forums.
According to a joint press release, both parties have agreed to an amicable, non-cash settlement to withdraw all claims in the ongoing arbitration before the Singapore International Arbitration Centre (SIAC) and all related legal proceedings before the National Company Law Tribunal (NCLT). They will also retract the respective composite schemes of arrangement from the NCLT and notify relevant regulatory authorities of the settlement.
As part of the agreement, neither Zee nor Sony will have any remaining obligations or liabilities to the other. This marks a resolution to the disputes that arose after the companies initially announced their merger on December 22, 2021. The merger was later called off by Sony Pictures.
Sony had approached the SIAC to seek an injunction preventing Zee from pursuing legal remedies through other forums, including the NCLT. After the SIAC rejected Sony’s plea for urgent relief, Mad Men Film Ventures, a Zee shareholder, approached the NCLT to ensure that any ruling concerning the merger would be subject to the NCLT’s decision.
Zee subsequently sought the enforcement of the $10 billion merger scheme through the NCLT in Mumbai, which had approved the merger in August 2023 despite opposition from several creditors, including Axis Finance, JC Flower Asset Reconstruction Co, IDBI Bank, Imax Corp, and IDBI Trusteeship. However, Zee withdrew its plea on April 7, 2023.
(With inputs from agency)
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