Zee Entertainment likely to repay IndusInd $10 million to wrap Sony deal

Earlier today, Zee Entertainment Enterprises Ltd had told the tribunal that its merger with a local unit of Japan's Sony will "get stuck" due to the initiation of insolvency proceedings against the company.

Zee Entertainment Enterprises Ltd and IndusInd Bank Ltd told the NCLAT on Wednesday that the two companies have settled a dispute over dues of the media company. IndusInd Bank, in its plea, had claimed a default of Rs 83.08 crore against the media and entertainment firm promoted by Subhash Chandra.

The National Company Law Tribunal on Friday dismissed IDBI Bank's insolvency plea against Subhash Chandra promoted Zee Entertainment Enterprises Ltd (ZEEL). ZEEL is in the process of a merger with Sony Pictures Network India (SPN). On December 22, 2021, ZEE and SPN signed a definitive agreement to merge the two companies. The proposed merger will see ZEE merging into SPN and, after closing, the merged company will be publicly listed in India.

The National Company Law Tribunal (NCLT) has issued a notice to Sony in response to ZEEL's plea regarding the enforcement of their merger. Get the latest updates on this matter.

The merger agreement, which has received all the requisite regulatory approvals, is stuck due to Sony's insistence on having its own executive SPNI MD & CEO, NP Singh, as the CEO of the proposed Sony-Zee joint entity since Punit Goenka, who is currently the MD & CEO of ZEEL, is still under investigation from the Securities Exchange Board of India (Sebi).

In January, Culver Max Entertainment (previously Sony Pictures Network India) called off the $10-billion merger with ZEEL after it claimed that Zee failed to meet some financial terms of the deal and come up with a plan to address them.

In a report on Thursday Bloomberg said that the media company has agreed to repay its dues to the IndusInd Bank to resolve insolvency proceedings against it

The insolvency plea by IndusInd Bank against Zee had raised questions over the smooth merger of the company with Sony Pictures, which was already delayed due to regulatory requirements. In February alone, shares of Zee Entertainment lost nearly 14% of its value.

The settling of dues of about Rs 837 million 10 million to the lender could happen as early as Friday and the Mumbaibased bank has agreed to withdraw its insolvency proceedings

New Delhi, Dec 17 (PTI) Media major Zee Entertainment on Sunday said it has sought an extension in the December 21, 2023 deadline of its proposed merger with Culver Max Entertainment (CMEPL), formerly known as Sony Pictures Networks India. Zee Entertainment Enterprises Ltd (ZEEL) had approached Culver Max and Bangla Entertainment Pvt Ltd (BEPL) for […]