Videocon Group chairman Venugopal Dhoot. Photo: Reuters
Videocon Group chairman Venugopal Dhoot. Photo: Reuters

Goldman Sachs files suit to recover Rs36 crore from Videocon

Goldman Sachs had lent the money to Videocon Global, a subsidiary of Videocon Industries, and the parent company was a guarantor to the loan, says the bank's advocate

Mumbai: Goldman Sachs has approached the bankruptcy court in Mumbai to recover around $5.6 million (Rs 36 crore) from Videocon Industries Ltd.

On Monday, the New York-based Goldman Sachs approached the National Company Law Tribunal (NCLT) against Videocon Industries. The bank has approached the tribunal as a financial creditor of the company.

“The bank had lent the money to Videocon Global Ltd, a subsidiary of Videocon Industries and the parent company was a guarantor to the loan," argued Prateek Seksaria, the advocate representing Goldman Sachs in the dispute. “Last year, we had approached the commercial division bench of the UK to recover the dues where the court has given ruling in our favour. Subsequently, the company had challenged the ruling which also got dismissed by the court in London."

Seksaria further argued that the court in London also granted legal expenses to the bank. The counsel further argued that the company had defaulted in the year 2015 in its derivative transactions at the International Swaps & Derivatives Associations (ISDA). “We have tried to serve them notice twice but they have refused to acknowledge the same and hence we have to file this petition at the NCLT," he added.

In January, the country’s largest lender, State Bank of India (SBI), approached NCLT against Videocon Industries and Videocon Telecommunications Ltd.

SBI has filed a case to recover about 3,500 crore from the company.

The legal representative of Videocon said that the total financial and operational debt of the company is around 40,000 crore. 

After hearing the arguments from the Goldman counsel, the division bench comprising Bhaskara Pantula Mohan and V. Nallasenapathy observed that since the suit filed by SBI is already pending and is coming up for the hearing on 23 April, the tribunal will hear the Goldman matter on 1 May.

Email queries to Goldman Sachs as well as Videocon Industries remained unanswered till press time.

According to Videocon Industries’ FY17 annual report, the company is liable to repay the liability of other group companies to the extent of Rs5,082 crore as on 31 March 2017.