On August 27, 2024, Zee Entertainment Enterprises Limited (ZEEL) submitted a significant disclosure to the BSE and NSE regarding the Composite Scheme of Arrangement involving the company, Culver Max Entertainment Private Limited (formerly Sony Pictures Networks India Private Limited), and Bangla Entertainment Private Limited.In the communication, ZEEL announced that, following the approval of its Board of Directors, the company has entered into a settlement agreement with Culver Max Entertainment and Bangla Entertainment. This agreement aims to resolve all disputes related to the Transaction Documents associated with the Scheme. Key points of the settlement include:
- Mutual Termination: The parties have agreed to mutually terminate all Transaction Documents related to the Scheme.
- Withdrawal of Claims: All applications, claims, and counterclaims before the Singapore International Arbitration Centre (SIAC) will be withdrawn, relinquishing rights to file any further claims against each other.
- Termination Fee: The agreement includes the resolution of claims related to the US$ 90 million termination fee, damages, and other costs incurred.
- Effectiveness of the Scheme: As a result of this settlement, the Scheme cannot be made effective, and applications will be made to the National Company Law Tribunal (NCLT) to recall the sanction orders previously granted.
The disclosure aligns with ZEEL’s commitment to transparency and compliance with the Securities and Exchange Board of India (SEBI) regulations. The company aims to ensure that its stakeholders are informed about significant developments affecting its operations and strategic direction.This settlement marks a pivotal moment for ZEEL as it navigates its corporate restructuring and aims to strengthen its position in the media and entertainment industry. The company continues to focus on enhancing shareholder value and operational efficiency while addressing any legal and regulatory challenges.
