Zee moves NCLT, SAIC against Sony Pictures post collapse of merger deal

Industry:    10 months ago

Days after its $10 billion merger transaction with Sony India collapsed, Zee Entertainment Enterprises moved the National Company Law Tribunal (NCLT), appealing to the court to direct Sony India to implement the merger scheme cleared by the NCLT in August last year.

At the same time, Zee has also initiated legal action to contest Culver Max Entertainment and Bangla Entertainment (owned by Sony) claims in the arbitration proceedings before the Singapore International Arbitration Centre (SIAC), the firm informed stock exchanges on Wednesday.

In its reply to Sony Pictures Networks India’s termination notice, Zee also denied any breach of its obligations under the merger agreement and reiterated that the company has complied with all its obligations in good faith.

“The company has denied that Culver Max and Bangla Entertainment are entitled to terminate the merger agreement, and the claim for termination fee is legally untenable and has no basis whatsoever,” the statement by Zee said.

Zee said Culver Max and Bangla Entertainment are in default of their obligations to give effect to and implement the merger scheme, sanctioned by the NCLT.

“The company has called upon Culver Max and Bangla Entertainment to immediately withdraw the termination and confirm that they will perform their obligations to give effect to and implement the merger scheme, sanctioned by the NCLT. The company has reserved all its rights in this regard,” Zee said as it reacted to the $90 million termination fees sought by Sony India.

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