Zee gears up for legal battle against Sony

livemint.com:

MUMBAI : Zee Entertainment Enterprises Ltd on Wednesday dragged Sony Pictures Networks India (now Culver Max Entertainment Pvt. Ltd) before the National Company Law Tribunal (NCLT), following the inglorious end to their two-year engagement. The Punit Goenka-led firm moved the tribunal seeking directions to implement the merger, while also initiating legal action to contest Culver Max and Bangla Entertainment Pvt.

Ltd’s (BEPL) claims in the arbitration proceedings before the Singapore International Arbitration Centre (SIAC), an exchange filing showed. The company in its filing stated that Culver Max and BEPL are in default of their obligations to give effect to and implement the scheme, sanctioned by NCLT. “The company has called upon Culver Max and BEPL to immediately withdraw the termination and confirm that they will perform their obligations to give effect to and implement the Merger Scheme, sanctioned by the Hon’ble National Company Law Tribunal.

The company has reserved all its rights in this regard," Zee added. The merger between two of the largest media companies was seen as one of the biggest in the Indian media and entertainment sector, before Sony called it off and demanded compensation for Zee breaching terms of the agreement. Consequently, in its reply issued to Culver Max and BEPL, Zee strongly denied any breach of its obligations under the Merger and Cooperation Agreement (MCA) and reiterated that it had complied with all its obligations in good faith.