NCLAT to hear Zee-Sony merger disputes on May 17
The National Company Law Appellate Tribunal (NCLAT) has scheduled a hearing for the disputes surrounding the Zee-Sony merger on May 17. This decision, made on April 15, dismisses the requests of creditors IDBI Bank and Axis Finance to postpone their hearing until the outcome of Zee's plea in the National Company Law Tribunal (NCLT) was determined. The now-canceled merger between Sony and Zee was expected to form a $10 billion media entity in India.
Sony terminated merger with Zee over financial discrepancies
Sony abruptly called off the anticipated merger with Zee on January 22, citing Zee's failure to meet certain financial prerequisites of the deal and their inability to present a plan to address these issues. In response, Zee refuted these claims and accused Sony of "bad faith" in ending the merger. Despite NCLAT's refusal to grant a stay on the merger in December, progress has been stalled due to its termination by Sony.
Zee's plea for merger continuation pending in NCLT
A plea urging Sony to proceed with the merger is currently pending with the Mumbai bench of the NCLT. It is scheduled for a hearing on April 25. Additional Solicitor General (ASG) N Venkatraman, representing IDBI Bank, stated that the outcome of Zee's NCLT plea would have a bearing on the case, as it would decide the future of the merger. The NCLAT case is an appeal against the approval of the merger, according to Zee's senior advocate Arun Kathpalia.
