Lenders to consider Videocon promoters' application for debt resolution

If the lenders agree to the proposal made by VIL's promoters, then it will be one of the first big ticket debt resolution by the lenders via Section 12A of the IBC

In an important test for insolvency laws, lend­ers to Videocon Industries have agreed to consider an application from the firm’s promoters for debt resolution, under Section 12A of the Insolvency and Bankruptcy Code (IBC).

The Section gives defaulters another chance to repay dues and retain control over their firms, even after a case has been admitted to the National Company Law Tribunal (NCLT) for debt resolution. This is subject to 90 per cent of the lend­ers agreeing to the proposal.

In case the lenders give their nod, it will be one of the first big-ticket resolutions via Section 12A. The