Sony Group’s India units Culver Max Entertainment and Bangla Entertainment have filed applications before the National Company Law Tribunal (NCLT) challenging the maintainability of Zee Entertainment Enterprises’ application seeking implementation of the merger scheme.
Hearing the matter today, the Mumbai bench of the NCLT has clubbed Zee’s plea with that of its shareholder Mad Man Film Ventures, and has posted the matter for hearing on March 12.
Mad Man Film Ventures has also approached the NCLT seeking implementation of the merger scheme between Sony and Zee. Sony has called Mad Man Film Ventures as a proxy for Zee.
The tribunal has also issued notices to Culver Max and Bangla Entertainment asking them to file a reply on Zee’s application.
In its plea to NCLT dated January 24, Zee has requested the tribunal to prevent Sony Group-owned firms from adopting any further steps that could jeopardise the implementation of the scheme.
It has also urged the tribunal to appoint a committee comprising two directors each from Zee and Sony companies to oversee the implementation of the composite scheme of arrangement.
Sony’s India units had terminated their merger agreement with Zee on January 22 citing breaches by the Indian media company and initiated arbitration proceedings against it seeking $90 million in termination fees.
On February 4, the Singapore International Arbitration Centre (SIAC) denied emergency interim relief to the Sony Group-owned entities against Zee, stating it has no jurisdiction to prevent Zee from approaching the NCLT and that the tribunal is the appropriate forum to handle the dispute.
Sony Pictures Entertainment (SPE) on Monday said it will continue to arbitrate against Zee before the full SIAC tribunal, a day after the global arbitral institution declined emergency interim relief to its India units.
SPE, a subsidiary of Tokyo-based Sony Group Corporation, also expressed disappointment with the SIAC’s decision to allow Zee to pursue its application with the NCLT.
“We are disappointed in the decision by the Singapore International Arbitration Centre (SIAC). This decision is only a procedural one, ruling only as to whether Zee Entertainment would be permitted to pursue its application with the NCLT,” SPE said in a statement.
The US-headquartered media company said it is confident about the merits of its position in both Singapore and India.
“We will continue to vigorously arbitrate the matter in Singapore in front of a full SIAC tribunal and pursue SPNI’s right to terminate the merger agreement and seek a termination fee and other remedies,” it added.
Source: Economic Times