NCLT gives a go ahead to Vedanta bid for Videocon group companies

The National Company Law Tribunal (NCLT) has approved the resolution plan of Vedanta arm Twin Star Technologies Limited for Videocon Industries and its 13 subsidiaries. The order of approval was passed on 8 June 2021.

The resolution plan of Twin Star Technologies for Videocon Industries and its subsidiaries were approved by CoC on 11 December 2020 by 95.09% vote share. The said resolution plan, as approved by the CoC, had been filed with the NCLT for its approval on December 15, 2020.  It took the NCLT almost 7 months to clear the resolution plan.

Anil Agarwal-promoted Vedanta Group has offered Rs 3,000 crore to creditors against creditors’ claim of Rs 60,000 crore. Out of the total debt of Rs 60,000 crore, the group owed Rs 57,500 crore to financial creditors alone. Operational creditors had put in claims of around Rs 2,500.

The insolvency petition against Videocon Industries was moved by State Bank of India – SBI has the largest voting share of 19.15% in the committee of creditors followed by IDBI bank with 16.63% vote share.

The insolvency application of SBI was admitted by NCLT on 6 June 2018.

On the request of Venugopal Dhoot, NCLT ordered consolidation of insolvency proceedings against all 13 group companies in August 2019.

As many as 11 resolution applicants had submitted their resolution plans for the consolidated corporate debtor.

In December 2020, ahead of the CoC meeting to decide on the resolution plans, Venugopa Dhoot had offered Rs 31,000 crore for settlement with the creditors. However, creditors were not too keen on Dhoot’s offer.

This is Vednata’s second acquisition through insolvency process. Earlier, it had acquired Electrosteel Steel Ltd for Rs 5,320 crore against creditors’ claim of over Rs 13,000 crore.

Payment proposals as per the Resolution plan

Also Read: Creditors not too keen on Videocon Group promoter’s full-payment proposal