Zee Entertainment Enterprises has refuted all claims made by Star India in an ongoing arbitration case. The latter has filed a claim for damages amounting to $940 million (around ₹7,802 crore).
What Happened: Zee Entertainment, in a disclosure to the exchanges on Wednesday, revealed that Star India has filed its Statement of Case before the London Court of International Arbitration (LCIA) on September 16. The case is related to an alliance agreement between the two companies, dated August 26, 2022.
Star India is seeking to declare that the agreement has been validly terminated by them and is claiming damages of $940 million (around ₹7,802 crore), along with costs, expenses, and applicable interest until full payment.
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Zee Entertainment has “categorically refuted all claims and assertions made by Star including its claims for damages,” according to the disclosure. The arbitration is currently in its initial stages and the LCIA Arbitral Tribunal is yet to determine if Zee Entertainment is liable in any manner. The company has stated that it will “strongly contest all unfounded claims by Star and reserves all its rights.”
The current dispute traces its roots to a $1.4 billion (around ₹11,620 crore) cricket broadcast deal signed in August 2022, granting Zee the broadcasting rights for ICC Men's and Under-19 global events for four years. However, Zee’s decision to not honour the deal has led to potential arbitration or legal proceedings for damages.
This comes on the heels of Zee Entertainment’s settlement with Sony India over merger disputes. The settlement resulted in the withdrawal of all claims against each other in the ongoing arbitration at the Singapore International Arbitration Centre, National Company Law Tribunal (NCLT) and other forums.
Price Action: Zee’s share price was down 0.66% to trade at 132.10 in the afternoon hours of trading on Wednesday.
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