The lenders of the Videocon group, set up by Venugopal Dhoot, will incur a loss of around 50 to 55 per cent. Earlier there were reports that as part of the resolution of the insolvent group, its financial lenders will have to take a loss or haircut of about 95 percent.
Videocon Group’s former Chief Financial Officer (CFO) Rajnish Gupta said the group is expected to earn up to Rs 15,000 crore from the sale of its oil and gas assets overseas. In such a situation, the lenders will have to bear the loss of 50 to 55 percent of their loan.
Videocon Industries Ltd. The company’s business includes consumer electronics as well as a stake in the Rawa oil and gas sector. Its overseas oil and gas assets mainly include Brazilian oil blocks. These properties will be auctioned separately to recover the outstanding debt.
Anil Agarwal’s company acquired
Anil Agarwal-led Vedanta Group has acquired Videocon Industries for Rs 2,962 crore, while bids for its overseas assets are yet to be decided. The resolution professional had approved the resignation of Gupta as CFO on March 30, 2021. Gupta claimed that Videocon’s Integrated Corporate Insolvency Resolution Process (CIRP) recovery would be more than 40 per cent of its total debt.
they will have to bear the loss
He said that the lenders will have to bear the loss, but it will be 50 to 55 percent, not 95 percent. He said that Videocon Industries’ investment in oil and gas assets is worth Rs 15,000 crore. These assets are not part of the acquisition of Vedanta Group.
NCLAT had banned
The National Company Law Appellate Tribunal had stayed the Rs 2,962.02 crore bid by industrialist Anil Agarwal’s company Twin Star Technologies to acquire debt-ridden Videocon Industries. A two-judge bench headed by NCLAT Acting Chairman Justice AIS Cheema had stayed the order passed by the Mumbai Bench of the National Company Law Tribunal on June 9 in this regard. This decision of NCLAT has been taken by two disgruntled lenders Bank of Maharashtra and IFCI Ltd. came on the petitions of The Appellate Tribunal had issued notices to the Committee of Lenders, Videocon’s resolution professional and the resolution applicant Twin Star.
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