The National Company Law Tribunal (NCLT) has approved the withdrawal of the merger between Zee Entertainment Enterprises Ltd and Culver Max Entertainment (formerly Sony Pictures Networks India).

The tribunal also recalled its sanctioned order in August last year for the merger of the two entities which could not proceed.

This came after Zee submitted to the NCLT that the parties to the merger scheme had mutually consented to withdraw it on account of a settlement agreement. The board of Zee had also passed a resolution on August 27, 2024 to withdraw the scheme of amalgamation.

Last month, both Zee and Sony had said they had settled their six-month-long dispute related to the failed $ 10-billion merger.

As part of settlement, they agreed to withdraw all claims against each other.

As part of the “comprehensive non-cash settlement” between Zee and Culver Max Entertainment Pvt Ltd (CMEPL), both “have mutually agreed to withdraw all respective claims against each other, in the ongoing arbitration at the SIAC and all related legal proceedings initiated in the NCLT and other forums,” a joint statement had said.

“The companies will also withdraw the respective Composite Schemes of Arrangement from the NCLT and inform the relevant regulatory authorities,” it added.

Both Zee and Sony had claimed a termination fee of $90 million from each other for not complying with the Merger Cooperation Agreement (MCA) signed in December 2021.