Insolvency: Videocon lenders invite fresh expressions of interest by Feb 2

This, after the insolvency appellate tribunal rejected the approval of Rs 2,692 crore bid by Vedanta Chairman Anil Agarwal-promoted Twin Star Technologies earlier this month

The consortium of lenders of Videocon Industries has invited fresh expressions of interest for the debt-ridden group after the insolvency appellate tribunal rejected the approval of Rs 2,692 crore bid by Vedanta Chairman Anil Agarwal-promoted Twin Star Technologies earlier this month.

Pursuant to the order of the National Company Law Appellate Tribunal (NCLAT), the consolidated Committee of Creditors (CoC) of Videocon Industries and 12 other group companies has "decided to re-invite fresh expressions of interest for submission of resolution plan, said the debt-ridden firm.

"The last date for receipt of expressions of interest (EOIs) is February 2, 2022," said Videocon Industries while updating the exchanges on Wednesday.

Earlier this month, allowing the plea of dissented creditors, the NCLAT had set aside the orders passed by the Mumbai bench of the NCLT, which had approved Twin Star's Rs 2,692 crore bid with a 95 per cent haircut against a total admitted claims of 64,637.6 crores.

The NCLAT asked the resolution professional of the company to re-run the process, which means a fresh bid has to be invited.

In its Judgement, the NCLAT had also observed that the mandatory approval from the Competition Commission of India was also not placed by Twin Star before the Committee of Creditors (CoC) in their meetings.

The NCLAT order had come over the plea by three dissenting creditors - Bank of Maharashtra (BoM), SIDBI and IFCI Ltd and set aside the approval granted by the Mumbai Bench of the National Company Law Tribunal (NCLT) to Twin Star's bid on June 9, 2021.

Videocon Industries along with its 12 group companies has admitted claims of Rs 64,637.6 crore.

Twin Star Technologies had earlier this week moved the Supreme Court challenging the order of the insolvency appellate tribunal.

Videocon was among the first 12 companies pushed into bankruptcy following a 2017 directive of the Reserve Bank of India (RBI) to auction firms that had unpaid dues.

The NCLT had in August 2019 consolidated insolvency process for the 13 group companies - Videocon Industries, Value Industries, Applicomp, CE India, Century Appliances, Electroworld Digital Solutions, Evans Fraser & Co, Millennium Appliances, PE Electronics, SKY Appliances, Techno Electronics, Techno Kart, Value Industries and Videocon Telecom.

Insolvency for two other Videocon companies - KAIL Ltd and Trend Electronics - were conducted independently.