IDBI approaches Delhi Bench of NCLAT challenging NCLT order in Zee-Sony Merger

6 Sep 2023 , 09:34 AM

The National Company Law Tribunal (NCLT)’s order approving the massive merger between Zee Entertainment Enterprises Ltd and Culver Max Entertainment (Sony Pictures) has been challenged by IDBI Bank.

The Mumbai Bench of the NCLT approved Zee’s $10 billion merger with Culver Max on August 10. It rejected the concerns of lenders such as IDBI Trusteeship, IDBI Bank, Axis Finance, JC Flowers Asset Reconstruction Co, and Imax Corp. The bench granted the merger application in an oral order.

On behalf of IDBI Bank Limited, the Company has been served with an appeal before the NCLAT, Delhi, challenging the order dated August 10, 2023, passed by the NCLT, Mumbai Bench, approving the composite scheme of arrangement amongst Zee Entertainment Enterprises Limited, Culver Max Entertainment Private Limited, and Bangla Entertainment Private Limited, said the company.

Sony and ZEEL inked comprehensive merger agreements in December 2021. According to the agreement, Sony will indirectly own 50.86% of the new firm following the merger, while the founders of ZEEL will own 3.99%. Other ZEEL stockholders will own 45.15% of the company.

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