NEWS
NCLT approves Anil Agarwal's takeover of Videocon
NCLT approves resolution plan submitted by the Anil Agarwal firm for Videocon Group; among other gains, Vedanta will now own more than ONGC in Ravva oil field in the KG Basin.
NCLT approves resolution plan submitted by the Anil Agarwal firm for Videocon Group; among other gains, Vedanta will now own more than ONGC in Ravva oil field in the KG Basin.
Billionaire Anil Agarwal will replace the Dhoots as the owner of Videocon Industries. The NCLT on Tuesday approved the resolution plan submitted by Agarwal-owned Twin Star Technologies for Videocon Group, making it the first successfully completed consolidated group insolvency case in India.
The resolution plan includes all the 13 companies belonging to the Videocon Group. Videocon Oil, Trend Electronics and KAIL’s resolution processes are also going on. Banks will recover dues from these three companies separately.
Among other gains, Vedanta, the parent of Twin Star Technologies, will now own more than ONGC in the Ravva oil field in the KG Basin. As a fallout of the NCLT approval, Vedanta will get to consolidate its holding in Ravva oil field, where it has 22.5% stake through Cairn. With Videocon holding 25% stake in Ravva, Vedanta’s total stake will now climb to 47.5%, higher than ONGC’s 40%.
A two-member Mumbai bench of the National Company Law Tribunal (NCLT) on Tuesday approved the resolution plan by Twin Star Technologies, which has offered to pay about Rs 3,000 crore to the lenders of Videocon Industries.
Twin Star will pay within 90 days an upfront amount of around Rs 500 crore. The remaining will be paid as non-convertible debentures (NCDs) over a period of time.
As per the resolution plan, the equity shares of the company are proposed to be delisted, Videocon Industries said in a regulatory filing on Tuesday.
In December 2017, State Bank of India had filed an insolvency petition against Videocon Industries. While separate bankruptcy proceedings were also initiated against 15 Videocon Group companies, the tribunal had excluded two of them — KAIL Ltd and Trend Electronics Ltd — from the scope of consolidation.
SBI led the lenders’ consortium consisting of 17 banks including Bank of India, Export-Import (Exim) Bank of India, Central Bank of India, IDBI Bank, ICICI Bank, and Union Bank of India.
The resolution plan, as approved by the committee of creditors (CoC), was filed with the NCLT for its approval on 15 December 2020.
