NCLAT issues notice to Zee Entertainment, refuses to stay merger

The private lender and the non-banking financial company have challenged the August 10 order of the Mumbai-bench of the National Company Law Tribunal (NCLT), which approved the ZEEL-Culver Max Entertainment merger, paving the way for the creation of the country’s largest media entity.

The National Company Law Appellate Tribunal on Friday issued notices to Zee Entertainment Enterprise Ltd (ZEEL) over the petitions filed by IDBI Bank and AXIS Finance against an NCLT order that approved the media company’s merger with Culver Max Entertainment.

However, a two-member NCLAT bench comprising Chairman Justice Ashok Bhushan and Member Arun Baroka declined to grant any stay over the merger process during the pendency of the hearing.

The appellate tribunal (NCLAT) has directed to list both petitions on January 8 for hearing, directing Zee Entertainment Enterprise Ltd to file a reply.

Also read | NCLT approves Zee-Sony merger, paves way for creation of $10 billion media giant

The private lender and the non-banking financial company have challenged the August 10 order of the Mumbai-bench of the National Company Law Tribunal (NCLT), which approved the ZEEL-Culver Max Entertainment merger, paving the way for the creation of the country's largest media entity.

The NCLT, in its order, dismissed some applications moved by financial institutions opposing the move, including those of IDBI Trusteeship, IDBI Bank, Axis Finance, JC Flowers Asset Reconstruction Co, and Imax Corp.

This was challenged by IDBI and Axis Finance before the appellate tribunal NCLAT.