After IDBI Bank, Axis Finance now makes an NCLAT complaint challenging the NCLT's approval of the merger of Zee and Sony

15 Sep 2023 , 11:36 AM

In order to challenge the NCLT’s approval of its merger with Culver Max Entertainment, formerly known as Sony Pictures Networks India, Zee Entertainment has been served with an appeal by Axis Finance in the NCLAT, Delhi, the company announced in a stock exchange intimation on Thursday.

The composite arrangement involving Zee, Sony, and Bangla Entertainment, a Sony subsidiary, received permission from the Mumbai bench of the National Company Law Tribunal on August 10. A number of ZEEL’s lenders, including IDBI Trusteeship, IDBI Bank, Axis Finance, JC Flowers Asset Reconstruction Co., and Imax Corp., had objected, but the NCLT had rejected their arguments.

This order is currently being contested before the NCLAT. Recently, IDBI Bank filed an appeal with the appellate tribunal to contest the Mumbai bench’s decision to approve the merger.

The Bombay High Court rejected Axis Finance’s move to intervene in Zee, Essel Mauritius, and Sony’s commercial summary lawsuit against ZEEL promoter Subhash Chandra Goenka and others in August 2023. Subhash Chandra Goenka was the target of the company’s attempt to recoup Rs 146 crore.

In a separate case against ZEEL that IDBI Bank is challenging before the NCLAT, the appellate tribunal has served notice on the entertainment company run by the Subhash Chandra family.

The NCLT judgment, which on May 19 denied a request to begin insolvency proceedings against the media giant, has been contested by the private lender.

Zee Entertainment and Sony Pictures decided to combine their companies in December 2021. The merger between Zee and Sony has had numerous difficulties despite receiving approval from the appropriate agencies.

After receiving approval from the National Stock Exchange, BSE, and sectoral regulators including the Competition Commission of India and the Securities and Exchange Board of India, both media organizations sought the tribunal to request that the merger be approved.

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