On Friday, an Indian court announced that it has halted insolvency proceedings against media conglomerate Zee Entertainment Enterprises.
Today, Zee Entertainment Enterprises Ltd. informed the tribunal that the opening of insolvency proceedings against the business will cause the merger with a local Sony division to ‘become stuck.’
The remarks came as Zee’s CEO, Punit Goenka, said in a statement on Thursday that he anticipated the merger between Zee and Sony to be completed on schedule.
Punit Goenka had contested yesterday the bankruptcy proceedings against the business started by a bankruptcy court due to an IndusInd Bank Ltd. loan default.
As of December 31, 2022, the 1992-launched Zee network had a 16.2% network share. The agreement with Sony was supposed to put the businesses ahead of Disney’s Star India.
Following its admission to insolvency procedures, Zee Entertainment’s shares fell to a 17-month low on Thursday, fueling concerns about potential delays to the Zee-Sony merger, which aims to create a $10 billion media behemoth in India.
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