This decision of NCLAT has been taken by two disgruntled lenders Bank of Maharashtra and IFCI Ltd. (IFCI) has come on the petitions.
The National Company Law Appellate Tribunal (NCLAT) has stayed the Rs 2,962.02 crore bid by industrialist Anil Agarwal’s company Twin Star Technologies for the acquisition of debt-ridden Videocon Industries. A two-member bench headed by NCLAT Acting Chairman Justice AIS Cheema stayed the order passed by the Mumbai Bench of the National Company Law Tribunal (NCLT) on June 9 in this regard.
This decision of NCLAT has been taken by two disgruntled lenders Bank of Maharashtra and IFCI Ltd. (IFCI) has come on the petitions. The Appellate Tribunal has issued notices to the Committee of Lenders (CoC), Videocon’s resolution professional and the resolution applicant Twin Star.
Will have to answer in two weeks
NCLAT has asked everyone to reply in this regard in two weeks. The next hearing of this case will now be held on September 7. Confirming the development, Bank of Maharashtra’s advocate Chaitanya B Nikate said that the NCLAT has stayed the order of the NCLT which cleared the bid.
Rs 3000 crore bid approved for acquisition
Let us tell you that last month, the bankruptcy court of NCLT allowed billionaire Anil Agarwal’s company Twin Star Technologies to acquire Videocon Industries for Rs 3,000 crore.
Videocon owes Rs 63,500 crore
According to the disclosure related to the bankruptcy case on the company’s website, in 2019, Videocon’s debt was more than Rs 63,500 crore. Out of this, Rs 57,400 crore was outstanding on more than three dozen banks and other financial creditors.
Videocon owes Rs 10,944 crore to the country’s largest bank SBI, IDBI Bank Rs 9,504 crore, Central Bank Rs 4,969 crore, ICICI Bank Rs 3,295 crore and Union Bank Rs 2,515 crore.
Vedanta has shown interest in Videocon group companies as it holds a 25 per cent stake in the Rawa oil field. After this acquisition, Vedanta will have 47.5 per cent stake in Rawa oil field. With this, it will become a bigger shareholder than ONGC’s 40 per cent stake. ONGC holds 40 per cent stake in Rava oil.
Videocon was started in 1986
Let us tell you that Videocon Industries was started in September 1986. After this it became the first company in India to get a license to manufacture color TVs. In the year 1990, the company expanded its portfolio and started manufacturing ACs, Washing Machines and Refrigerators.
In the year 2020, the group forayed into Oil & Gas, Telecom, Retail and DTH TV. The company borrowed for these projects and the interest burden on it increased. In 2016, the group tried to divest the business and sold Videocon d2h to Dish TV.
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