ZEEL vs Sony merger mess: NCLT accepts shareholder petition

The National Company Law Tribunal (NCLT) threw another curveball in the tumultuous ZEEL-Sony merger saga on Tuesday, accepting a petition filed by a ZEEL shareholder seeking to push the deal through. This move puts significant pressure on Sony, now officially known as Culver Max Entertainment Ltd, to respond within three weeks.
Mad Men Film Ventures, a ZEEL shareholder, filed the petition demanding both companies honour the merger agreement approved by the NCLT in August 2023. Interestingly, the tribunal rejected Sony's arguments that the merger approval was conditional on certain criteria, implying it could proceed without those conditions being met.
This latest development comes after ZEEL initiated legal action against Sony on January 24th, contesting the abrupt cancellation of the $10-billion merger deal. ZEEL demanded Sony and their subsidiary Bangla Entertainment Ltd (BEPL) immediately retract the termination and commit to fulfilling their obligations to complete the merger.
The NCLT has scheduled the next hearing for March 12th, setting the stage for a potentially decisive chapter in this ongoing corporate drama. With shareholder pressure mounting and legal proceedings in motion, Sony will have to carefully navigate its next steps while ZEEL fights for the merger's revival.