Under Videocon resolution plan, govt agencies to receive Rs 5.7 crore against Rs 1,587 crore claims
As per the approved resolution plan of Vedanta Ltd for acquisition of Videocon group of companies, the Anil Agarwal-owned company will make a payment of Rs 2,900 crore to financial creditors against their total claim of Rs 61,773 crore.
As pe the plan, Vedanta will make an upfront Payment of Rs 200 crores, out of which Rs 2 crores will form part of the litigation corpus.
The rest of the amount will be paid through Issuance of NCDs of aggregate face value of Rs 2,700 crore. NCDs will be redeemable in 5 instalments. The first instalment of Rs 200 crore will become due 25 months from the closing date, the second instalment of Rs 625 crores will be due 3 years from the closing date, the third instalment of Rs 625 crores shall be due in the 4th years, the fourth instalment of Rs 625 crore would become due in 5 years and the final instalment of Rs 625 crore would become due in 6 years. The outstanding NCDs will carry a coupon of 6.65% payable annually.
Dissenting FCs shall in any event be paid their portion of the upfront payment prior to the consenting FCs are paid their portion. – NCDs issued to the Dissenting FCs shall be redeemed one day prior to the NCDs of the consenting Financial Creditors.
Subsequent to payment of CIRP Costs, cash balances available on the plan effective date would accrue to the financial creditors. After the implementation of the resolution plan, the financial creditors (except the dissenting financial creditors) will receive 8% of equity holding in Videocon Industries Ltd, on a post-money fully diluted basis.
The Rs 52 crore due to employees of Videocon Industries will be paid upfront as and when the resolution applicant infuses money.
As for operation creditors other than the employees, the resolution plan envisages a payment of Rs 10 crore against the today due of Rs 2,765 crore. This includes statutory dues of Rs 1,587 crore. Statutory creditors will receive an amount of Rs 5.7 crore out of the Rs 10 crore allocated amount.
Payment plan under the resolution plan for Videocon Industries
| Creditors | Admitted Claims (Rs cr) | Payment proposed under resolution plan (Rs cr) | %payment |
| Secured Financial Creditors (Assenting) | 56,215 | 2,779 | 4.89 |
| Secured Financial Creditor (Dissenting) | 2,307 | 105 | 4.56 |
| Unsecured Financial Creditor (Assenting) | 2524 | 15.72 | 0.62 |
| Unsecured Financial Creditor (Dissenting) | 727 | 0 | 0 |
| Operational Creditors | 3003 | 62 | 0.72 |
| Other Debts | 165 | 0 | 0 |
Also Read: NCLT gives a go ahead to Vedanta bid for Videocon group companies
