The NCLT had approved the acquisition bid of Rs 2,962 crore by Anil Agarwal’s Twin Star Technologies for 13 companies of the debt-ridden Videocon Group.
Venugopal Dhoot, former promoter of Videocon Group, has moved the NCLAT against the acquisition bid of Anil Agarwal’s Twin Star Technologies for the group. Earlier, the National Company Law Tribunal (NCLT) had approved the acquisition bid of Rs 2,962 crore by Anil Agarwal’s Twin Star Technologies for 13 companies of the debt-ridden Videocon Group.
Dhoot, in his petition filed before the NCLAT, has appealed to set aside the decision of the Mumbai bench of the NCLT. He has also requested the tribunal to direct the lenders to consider the Rs 31,789 crore settlement plan submitted by them under Section 12 of the Insolvency and Bankruptcy Code (IBC).
Questions raised on resolution
The former promoter of the Videocon group has also questioned the role of the resolution professional in his petition. They say that Videocon Group’s overseas oil and gas assets should have been mentioned in the information memorandum given by the resolution professional to all the bidders. Due to non-mention, evaluation was not included.
NCLAT gave a big blow, put a stop to the acquisition
Explain that the National Company Law Appellate Tribunal (NCLAT) has stayed the bid of Rs 2,962.02 crore by industrialist Anil Agarwal’s company Twin Star Technologies for the acquisition of debt-ridden Videocon Industries.
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 the year 2016, the group tried to divest the business and sold Videocon d2h to Dish TV.
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