Zee Entertainment withdraws the application filed against Sony from NCLT

New Delhi . Zee Entertainment Enterprises Ltd has withdrawn from the National Company Law Tribunal (NCLT) its plea seeking freezing of its merger agreement with Sony Pictures. Zee Entertainment had filed this petition before the Mumbai bench of NCLT on January 24, 2024. In this, a direction was sought that the merger agreement between Zee Entertainment and Sony group companies Culver Max Entertainment Private Limited and Bangla Entertainment Private Limited should be implemented.

Sony Group had on January 22 canceled the $10 billion deal to merge its Indian unit with Zee Entertainment. Sony had backed out after the impasse between the two parties over the leadership of the merged entity could not be resolved. Along with this, Sony demanded damages of 90 million dollars for non-compliance of the terms of the merger agreement and took the matter to the arbitration tribunal.

Zee Entertainment said in a statement issued on Tuesday that the move to withdraw the settlement implementation application from NCLT is based on the legal advice received by the board of directors. “This move will enable the company to aggressively pursue all its claims against Sony in the ongoing arbitration proceedings at the Singapore International Arbitration Center (SIAC) and other forums,” the company said. Zee Entertainment and Sony Pictures Had the merger deal been completed, it would have paved the way for it to become the largest media entity in India. But it did not come to fruition due to lack of consensus on the leadership of the new unit.

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