The two companies had informed NCLAT that they have reached a settlement in relation to their payment dispute, paving way for the Sony deal, in March 2023.
IndusInd Bank had approached the bankruptcy court in February, seeking to start insolvency proceedings against Zee, a move which could have threatened the merger by stopping all transactions, including asset transfers.
IndusInd Bank, in its plea, claimed a default of Rs 83.08 crore against the media and entertainment firm promoted by Subhash Chandra.
In December 2021, Sony and Zee signed a merger deal to combine their linear networks, digital assets, production operations, and program libraries. However, the deal has been delayed due to reasons including a legal battle with lenders over loan defaults by a Zee group entity.
The Sebi, on June 12, had restrained both, Subhash Chandra and Punit Goenka, from holding any directorship or key managerial positions in listed entities on account of alleged fund diversion in an ex-parte interim order. This ban was challenged by Chandra, Goenka. However, SAT on June 27 had reserved its order on the petitions filed by the two individuals challenging Sebi’s interim order.Goenka, in an exclusive interview with the Economic Times, had asserted that the merger between ZEE Entertainment and Sony will go through. “The ZEE-Sony merger holds immense significance, regardless of my position as CEO. The resulting entity will be under Sony’s control, and they have chosen to retain me as a promoter, MD, and CEO,” he had said.The NCLAT, an appeals court, had halted the insolvency proceedings against the media company last month.
A lawyer representing Zee told NCLAT that the Sony deal had received all necessary approvals but would be stalled because of the initiation of corporate insolvency proceedings.
The merger, which has been in the making longer than the timelines originally indicated by Zee, had been approved by Zee’s shareholders and India’s antitrust regulator.
