Former promoter moves NCLAT against Twinstar’s bid for Videocon
Venugopal Dhoot, former promoter of the Videocon Group, has moved the National Company Appellate Tribunal (NCLAT) against the approval of Twinstar Technologies Ltd’s bid for Videocon Industries Ltd.
Venugopal Dhoot has requested the NCLAT to set aside the Resolution Plan as approved by the NCLT and to direct the Committee of Creditors (CoC) to consider the Resolution Plan submitted by him under Section 12A of the Insolvency and Bankruptcy Code (IBC). Dhoot had offered to settle all outstanding dues by making a payment of Rs 30,000 crore.
In his petition to NCLAT, Venugopal Dhoot has mentioned said that the resolution professional had failed to consider all the assets of the Videocon Group while inviting bids from prospective buyers, as a result of which the CIRP of Videocon Industries and its group companies fetched only Rs 2,900 crore.
According to the petiton, NCLT Mumbai by order dated on 15 December 20 held that foreign oil and gas assets of Videocon Group held through its foreign subsidiaries, are in fact purchased by Videocon Industries Ltd (VIL) and are to be treated as assets of VIL. The Liquidation Value of these Oil assets is not less than Rs 15,000 crores. As such the resolution professional or the CoC has no authority to sell Oil assets and Consumer durables separately.
If RP has sold Oil and Consumer durables together, RP would have got minimum 25000 crores Rupees against loan of Rs.49000 crores, argues the petition. Anil Agarwal-owned Twinstar Technologies has offered Rs 2,900 crore to the creditors.
Dhoot’s petition says that his offer of Rs 30,000 crore to the bank was earlier approved by the lenders in October 2017, however, once the company went into CIRP, the same proposal was rejected by the CoC.
Here are other points made by Venugopal Dhoot in his petition to NCLT:
- RP has been responsible for diminishing the value of Videocon Group by closing it down and not running factory. When they are taking 1.5 crore per month from COC as their fees for keeping the companies in CIRP as going concern however nothing was done to keep the group as going concern. This has resulted in eroding Brand Value. This business would have got valuation because of its brand development, after sales service and relation with retailors. But this system was ruined once the company went under the control of RP.
- It needs to be considered as to whether Resolution Professional or any other person acting on his behalf has managed the liquidation value and whether the confidentiality has been maintained.
- Whereas the claims of the foreign oil and gas assets to the tune of Rs 23,120.90 crore have been admitted by the Resolution Professional and assets are being kept outside the purview of CIRP of Corporate Debtors despite the order of NCLT treating oil and gas assets as assets of Corporate Debtor.
- Prior to being admitted into insolvency, Videocon Group, in accordance with the corrective action plan, decided to sell assets and ensure that the entire consideration is directly deposited with the consortium of lenders for repaying the debt facilities without bringing in the technical aspects, with a larger interest and intention to repay entire possible amount.
- Besides above, Videocon Group was ready and willing to sell all its remaining assets including the assets of the promoters to service the debts through the agencies appointed by the consortium of the lenders.
Dhoot has claimed in his petition that he has always worked in the interest of stakeholders prior to admission into CIRP and during the CIRP, and that he is still willing to resolve the debt and provide better returns to the stakeholders.
Also See: Under Videocon resolution plan, govt agencies to receive Rs 5.7 crore against Rs 1,587 crore claims
