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ZEE moves NCLAT over Sony terminating merger deal

ZEE Entertainment Enterprises Limited (ZEEL) has moved the National Company Law Tribunal Mumbai and Singapore International Arbitration Centre after Sony pulled out of the proposed $10 billion merger deal.

The company has also requested Culver Max Entertainment Ltd (formerly known as Sony Pictures Network India) and Bangla Entertainment Ltd (BEPL) to withdraw the termination of the deal.

In a statement to Bombay Stock Exchange, ZEEL said, “Pursuant to Regulation 30 read with Schedule III of the SEBI Listing Regulations, we wish to inform that, basis the authorization of the Board of Directors of the Company, the Company has undertaken the following actions:

1. The Company issued a reply to Culver Max and BEPL inter alia specifically denying any breach of its obligations under the MCA (Merger Cooperation Agreement) and reiterated that the Company has complied with all its obligations in good faith. The Company has denied that Culver Max and BEPL are entitled to terminate the MCA and the claim for termination fee is legally untenable and has no basis whatsoever. The Company asserted that Culver Max and BEPL are in default of their obligations to give effect to and implement the Scheme, sanctioned by the Hon’ble National Company Law Tribunal.

2. 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. The Company approached the Hon’ble National Company Law Tribunal, Mumbai bench inter alia seeking directions to implement the merger scheme.

3. The Company initiated appropriate legal action to contest Culver Max and BEPL’s claims in the arbitration proceedings before Singapore International Arbitration Centre (SIAC)”

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