NCLAT refuses to stay Zee-Sony merger, case now to be heard in January

IDBI Bank and Axis Finance had challenged the August 10, 2023, order of the Mumbai bench of the National Company Law Tribunal (NCLT), which approved the Zee-Sony merger

The National Company Law Appellate Tribunal (NCLAT) on December 15 said it will not grant a stay on the merger of Culver Max Entertainment, formerly Sony Pictures Networks India and Zee Entertainment Enterprises Ltd (ZEEL). According to a report by Moneycontrol, the case will now be heard on January 8.

IDBI Bank and Axis Finance had challenged the August 10, 2023, order of the Mumbai bench of the National Company Law Tribunal (NCLT), which approved the merger, paving the way for the creation of the country's largest media entity.

While approving the merger, the NCLT, in its order, dismissed some applications moved by financial institutions opposing the move, including those of IDBI Trusteeship, IDBI Bank, Axis Finance, JC Flowers Asset Reconstruction Co, and Imax Corp.

IDBI Trusteeship Services Limited (ITSL) had also filed an appeal at the NCLAT against Essel Group chairperson Subhash Chandra. IDBI Trusteeship told the NCLT that it is the debenture trustee of 425 debentures issued by Essel Infraprojects Limited (EIL) in favour of certain schemes managed by Franklin Templeton Asset Management (India) Pvt. Ltd.

It said that Chandra had executed a personal guarantee on June 25, 2019, in favour of IDBI Trusteeship (for the benefit of Franklin Templeton), guaranteeing the repayment obligations towards the debentures.

In May, NCLAT set aside the NCLT order directing the National Stock Exchange (NSE) and BSE to review their no-objection certificate given for the Zee-Sony merger. The matter was sent back to NCLT.

As of 12:30 pm on Friday, Zee Entertainment's shares were trading 2 per cent in the green at Rs 284.1 apiece.