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The Mumbai bench of the National Company Law Tribunal on Tuesday approved the resolution plan submitted by Anil Agarwal-owned Twin Star Technologies for acquiring Videocon Industries Ltd.

Twin Star Technologies offered to pay 2,962 crore against Videocon’s financial liabilities of around 62,000 crore. Of the overall debt, 50% is accounted as debt, while the rest is in terms of a guarantee for Videocon Oil Ventures Ltd (VOVL).

Twin Star will pay around 3,000 crore, besides another 500 crore cash lying with Videocon to the banks. Lenders will also get 599 crore worth of equity in Videocon after the takeover of the company by Twin Star.

The resolution plan includes all the 13 group companies of Videocon. The resolution for Videocon Oil, Trend Electronics and KAIL are under process, and banks will recover dues from the three companies separately.

The 17-member lenders’ consortium led by State Bank of India also includes Bank of India, Export-Import (Exim) Bank of India, Central Bank of India, IDBI Bank, ICICI Bank and Union Bank of India.

Videocon, a consumer durables manufacturer of air-conditioners and washing machines, was among the first 12 companies pushed into bankruptcy after directions from the Reserve Bank of India in 2017. In December that year, State Bank of India had filed an insolvency petition against Videocon Industries. Separate bankruptcy proceedings were also initiated against 15 Videocon Group companies. The tribunal had excluded two Videocon Group entities—KAIL Ltd and Trend Electronics Ltd—from the scope of consolidation, and had appointed Abhijit Guhathakurta as the resolution professional for the group insolvency process.

“This is the first successfully concluded group insolvency case in the country and is a very significant milestone achievement for the country and for implementation of the Insolvency and Bankruptcy Code," said Deloitte, which was the advisory firm to the resolution professional.

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