Videocon lenders to meet under insolvency resolution process

Last month, the lenders of Videocon Industries had approved the bid by Twin Star Technologies, promoted by billionaire Anil Agarwal's family, under the insolvency resolution process of the debt-ridden firm.

New Delhi: The lenders of debt-ridden Videocon Industries and 12 other group companies will meet on Tuesday under the insolvency resolution process (IRP).

"The 20th meeting of the consolidated committee of creditors (CoC) of Videocon Industries Ltd and other 12 Videocon group companies, having a consolidated corporate insolvency resolution process, is scheduled to be held on Tuesday, January 5,” the firm said in a regulatory filing.

This is in accordance with the provisions of Regulation 19 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, it added.

Last month, the lenders of Videocon Industries had approved the bid by Twin Star Technologies, promoted by billionaire Anil Agarwal's family, under the insolvency resolution process of the debt-ridden firm.

The company, however, did not elaborate on the agenda of the meeting of the consolidated CoC.

On December 16, Videocon Industries in a regulatory informed that the CoC of the company had voted in favour of the resolution plan of Twin Star Technologies, for 13 group companies with 95 per cent votes.

However, the filing did not mention the amount which Twin Star Technologies had offered.

The said resolution plan, as approved by the CoC, has been filed with the National Company Law Tribunal, Mumbai in accordance with the Section 30(6) of the Code for its approval on December 15, 2020, it added.

Videocon Industries owes around Rs 31,000 crore to the banks, which also includes interests.

Earlier, the Dhoot family had offered to pay Rs 30,000 crore to lenders to settle their outstanding loans and pull out 13 Videocon group companies from the insolvency proceedings.

A proposal for paying the amount was forwarded to the CoC of the Videocon Industries, under section 12 A of the Insolvency & Bankruptcy Code (IBC).

However, the creditors have chosen Vedanta Group's offer, which has placed its resolution plan through one of its subsidiary companies.

Vedanta's interest in Videocon is principally driven by the latter's 25 per cent stake in the Ravva oil field.

Vedanta, through Cairn, holds 22.5 per cent stake in Ravva and any successful bid by Vedanta will take its stake to 47.5 per cent, and it will be the biggest stakeholder ahead of ONGC's 40 per cent.

The average output from the Ravva block in 2019-20 was 14,232 barrels of oil equivalent per day (boepd), and it increased to 22,037 boepd in the first quarter of 2020-21.

Dhoot's settlement offer was made for 13 out of the 15 Videocon group companies, which are jointly going through the Corporate Insolvency Resolution Process (CIRP).

Two group companies -- KAIL and TREND -- were not covered under the offer.

(PTI)