Lenders waiting for Godot in Videocon insolvency as IBC wheels turn slow

Banks have been waiting for their dues since 2017 as the issue over naming of resolution professional and consolidation of all group firms into one resolution plan delayed the whole process

In November 2017, Indian lenders were almost close to clearing a debt restructuring package for Videocon Industries after the forensic auditors gave a clean chit to the company. But within a month, the Reserve Bank of India asked banks to send the company to the National Company Law Tribunal (NCLT) for debt resolution under IBC 2016.

Since then, the banks have been waiting for their dues as the litigation over appointment of the resolution professional and consolidation of all group companies into one resolution plan delayed the entire process. By the time bids were called in this year, three years