BackVideocon moves NCLT principal bench for consolidation of all insolvency proceedings
Videocon moves NCLT principal bench seeking consolidation of all insolvency proceedings pending against it and group companies under IBC at NCLT Mumbai Bench
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New Delhi: Videocon Industries Ltd on Wednesday moved the National Company Law Tribunal (NCLT) principal bench in New Delhi, seeking consolidation of all insolvency proceedings pending against it and its group companies under the Insolvency and Bankruptcy Code (IBC) at the NCLT Mumbai bench.
The bench, headed by president M.M Kumar, asked Videocon Industries to submit an affidavit, stating the details of proceedings pending before the three courts of the NCLT Mumbai bench.
Arun Kathpalia, appearing for Videocon Industries, informed the bench that the ongoing insolvency proceedings against it and Videocon group companies, such as Millennium Appliances India, Applicomp (India), Sky Appliances, Techno Electronics, Videocon Telecommunications and Videocon International Electronics, were pursuant to a common loan agreement.
Therefore, any insolvency resolution out of the proceedings would have to be “collective", Kathpalia said, while seeking a direction for transfer of all proceedings to a single bench.
In 2011, a consortium of banks led by State Bank of India had entered into a loan arrangement with Videocon Industries under which all the rupee term loans of the affiliates of Videocon Industries were pooled. This joint loan made all 14 affiliates of Videocon Industries jointly and separately liable for loan repayments.
The company’s total debt stood at Rs19,506 crore as of March last year.
SBI moved NCLT Mumbai in January for initiation of insolvency proceedings against Videocon Industries which features in the so-called second list of 28 defaulters by the Reserve Bank of India (RBI). This was followed by insolvency petitions against its affiliates as well.
The matter will be listed after Videocon Industries submits the affidavit detailing pending insolvency proceedings.
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