The Mumbai bench comprising Justice HP Chaturvedi and Justice Ravikumar Duraisamy of the National Company Law Tribunal (NCLT) gave its approval to Twin Star Technologies’ resolution plan for bankrupt Videocon Industries Ltd. The tribunal has cleared the acquisition of Videocon to Anil Agarwal-owned firm. Twin Star Technologies is a part of billionaire Anil Agarwal’s Vedanta Group.
As Videocon Industries Ltd. was saddled with around ₹46,000 crore of debt, Twin Star Technologies will be offering ₹2,962 crore to its lenders. In December, the lenders had sought the court’s approval for the resolution plan submitted by Twin Star.
According to Business Standard, Twin Star will pay ₹3,000 crore and another ₹500 crore cash lying with the company will be given to the banks.
A Videocon official has said that Videocon Oil, KAIL Ltd. and Trend Electronics’ resolution processes are going on as well. The banks will be recovering the dues from these three companies separately.
In 2017, Videocon was among the first 12 companies pushed into bankruptcy after Reserve Bank of India’s (RBI) instructions. The same year, in the month of December, the State Bank of India (SBI) had filed an insolvency petition against Videocon Industries. The tribunal did not include KAIL Ltd. and Trend Electronics Ltd. (Videocon Group entities) from the scope of consolidation.
As said to BloombergQuint, legal advisor for the resolution professional and a partner at Shardul Amardchand Mangaldas, Anoop Rawat stated that the judgement has set a precedent for successful resolution via consolidated insolvency proceedings. He added, “The consolidation is not merely procedural but rather substantive”.