The National Company Law Tribunal (NCLT) has asked SBI not go ahead with its plans to sell the overseas oil & gas assets of Videocon Industries in its bid to recover some of their dues from the bankrupt group.
Asking for maintaining the status quo, the NCLT said if SBI is allowed to execute the sale as advertised, the Videocon Group may suffer irreparable losses if this tribunal in future takes a view that the assets in question belong to or owned by the group.
These subsidiaries are special purpose vehicles (SPVs) specifically incorporated by Venugopal Dhoot for holding foreign oil and gas assets for and on behalf of the group, the tribunal said in its order dated September 7.
Therefore, it said, the creditors of these SPVs have lodged their claims with the RP. However, on merits the matter is still sub judice, the tribunal added.
"SBI is hereby prohibited to go ahead with the advertisement and is directed to maintain the status quo till the decision is pronounced on merits," the NCLT said.
The order came after SBI has advertised to sell the upstream oil and gas assets of Videocon in Brazil and Indonesia inviting expression of interests (EoIs).
Videocon Industries had earlier requested NCLT to include Videocon Energy Brazil and Videocon Indonesia Nunukan Inc in the ongoing corporate insolvency resolution process, after its lenders invited bids for these assets to recover part of their debt.
The Videocon group along with its with 15 operating companies, owes over Rs 90,000 crore to lenders and is among the 40 largest defaulters identified by the Reserve Bank in its first list for insolvency in late 2016.