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MUMBAI: Bank of Maharashtra, among the three lenders that moved an appeals court against Vedanta group firm’s resolution plan for Videocon Group, feels that the resolution value is too low, its chief executive AS Rajeev said on Thursday.

“We have gone to the National Company Law Appellate Tribunal (NCLAT) basically because of the low resolution (value) and have taken it up with the court. Based on the court’s prudence, we will go ahead with that," said Rajeev.

At a December vote, over 95% of lenders backed Twin Star’s 2,900 crore plan for Videocon which implies a 95% haircut—the company owes 61,773 crore to financial creditors—while the rest dissented or abstained. NCLT approved the plan in June, prompting three dissenting lenders—Bank of Maharashtra, Small Industries Development Bank of India (Sidbi) and IFCI Ltd—to move NCLAT.

Under the current plan, Twin Star would issue non-convertible debentures to creditors with a face value of 2,700 crore, which would be redeemable in five instalments. The first instalment of 200 crore will be due 25 months from issuance, while instalments of 625 crore each will be due between three and six years from date of issuance.

“We don’t have any comments on this as the case is sub judice," Rajeev said when asked if they want the resolution plan tweaked.

Mint reported on Thursday that lenders to Videocon are likely to seek higher upfront cash from the successful resolution applicant Vedanta group.

Meanwhile, the bank’s June quarter net profit has more than doubled on a year-on-year (y-o-y) basis to 208 crore, on the back of higher net interest income (NII) and other income. The bank’s operating profit rose 56% y-o-y to 1,110 crore. The bank also showed an improvement on the asset quality front as bad loans as a percentage of total advances declined to 6.35% as on 30 June, as against 7.23% as on 31 March.

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