Hearing for an emergency arbitration in the Zee Entertainment-Sony merger case will take place in Singapore tomorrow, January 31, sources with knowledge of the matter told CNBC-TV18.
The Singapore International Arbitration Center is the first Asian arbitration institution to offer this process and has received over 130 applications since 2010 for the appointment of an Emergency Arbitrator.
In case the application for emergency interim relief is accepted, an Emergency Arbitrator will be appointed within a day, as per CNBC-TV18.
Read More: Zee shareholders seek transparency on merger fallout with Sony
Sony had initiated arbitration proceedings for an alleged breach of terms by Zee Entertainment. In response, Zee initiated legal action to contest Culver Max and BEPL’s claims at the Singapore International Arbitration Centre.
Zee Entertainment has called Sony’s demand for $90 million in termination fees legally untenable and has also denied the breach of the merger agreement in response to Sony. Sony had scrapped the proposed $10 billion merger with Zee after the latter failed to meet certain financial terms of the deal and come up with a plan to address them, as per sources and reports.
Zee has denied the allegations in a letter to Sony and accused the Japanese company of “bad faith” in calling off the merger.
On Monday, Zee promoter Subhash Chandra told Mint in an interview that the company’s promoters plan on taking their stake back up to 26% from the current four percent.
Read More: Merger plans to legal disputes: Sony-Zee saga far from over