NCLT approves Zee-Sony merger

livemint.com:

BSE Ltd had already given their clearances. The approval took time as various financial and operational creditors had moved the NCLT opposing the merger while also filing please to initiate corporate insolvency resolution process against ZEEL.

Creditors including IDBI Bank, IndusInd, Axis Finance, JC Flower ARC, among others, had opposed the merger on the grounds that there were loans taken by ZEE that were due and payable to the creditors. However, ZEE at various stages entered settlement with some of its creditors.

While IndusInd and JC Flower have settled the dispute IDBI and Axis Finance’s insolvency petition are pending before the tribunal. To add to ZEE’s woes the NCLT in May had asked the exchanges to reassess its approval for the merger.

However, a higher tribunal overturned NCLT’s order to the bourses. The NCLT order followed a 12 June Sebi direction which barred the father-son duo from boardrooms of listed companies over allegations of fund diversion.