Zee Entertainment Receives NCLT Approval for Settlement Agreement with Sony India

The National Company Law Tribunal has granted Zee Entertainment Enterprises Ltd. permission to withdraw its application and claims in the arbitration proceedings pertaining to its merger with Sony Pictures Networks India.

With this disclosure, the merger lawsuit that had been pending for almost three years comes to an end.

In an exchange filing on Thursday, Zee stated, "NCLT, inter alia, allowing the withdrawal of the scheme and recall the sanctioned order dated Aug. 10, 2023, passed by the NCLT in respect of the scheme."

By submitting an application on August 29, the corporation attempted to recall the NCLT's Aug. 10 ruling approving the merger, Zee said.

The merger agreement was authorized by Zee's board of directors in December 2021, following the start of the Zee-Sony merger negotiations in September 2021.

Sony terminated the merger deal in January as a result of opposition from creditors and numerous legal battles, even after the merger received regulatory permits and cleared major legal obstacles. 

Zee and Sony announced a comprehensive non-cash settlement in August, amicably resolving disagreements over the Merger Cooperation Agreement and the Composite Scheme of Arrangement.