- NCLT sends notice to Sony regarding terminated Zee merger, seeking response within two weeks.
- Sony terminated $10 billion merger last month, citing Zee’s failure to meet conditions precedent, including financial management.
- Mad Men Film Ventures also urges NCLT to proceed with approved merger, highlighting significance of Zee-Sony alliance in Indian TV industry.
The National Company Law Tribunal (NCLT) has issued a notice to Sony following the termination of the proposed merger with Zee Entertainment Enterprises. Sony terminated the $10 billion merger last month, alleging that Zee failed to meet several conditions precedent, including financial management and recovery of dues from related parties. In response, Zee approached NCLT, asserting the tribunal’s jurisdiction to entertain petitions related to the merger’s implementation.
In the midst of legal proceedings, Culver Max Entertainment, representing Sony, indicated plans to challenge the maintainability of Zee’s plea. The term “maintainability” refers to the legal validity of Zee’s petition. NCLT has directed Sony to submit its response within two weeks, scheduling the case for hearing on March 12.
Additionally, NCLT acknowledged a similar plea from Mad Men Film Ventures, a Zee shareholder, urging both parties to proceed with the approved merger. The proposed Zee-Sony merger, in development for two years, aimed to create a formidable entity in the Indian TV landscape, boasting over 90 channels across sports, entertainment, and news segments. The merger’s termination underscores the complex dynamics and legal intricacies involved in major corporate alliances within the media industry.
