Videocon’s committee of creditors had approved Twin Star’s bid by a 95 percent majority in December 2020
June 08, 2021 / 10:01 PM IST
The Mumbai bench of the National Company Law Tribunal (NCLT) on June 8 approved Vedanta Group subsidiary Twin Star Technologies’ resolution plan for Videocon Industries and 12 other companies of the Videocon Group. As per the terms of the resolution plan, Videocon Industries will be delisted, the company said in a notification to the stock exchanges.
On December 16, 2020, Videocon Industries had said that in the 19th meeting of its committee of creditors (CoC) and consolidated corporate debtors, held on November 11, 2020, of which the voting process concluded on December 11, 2020, the CoC approved the resolution plan submitted by Twin Star Technologies. Twin Star’s resolution plan was passed, with 95.09% of votes.
“The said Resolution Plan, as approved by the CoC, had been filed with the NCLT in accordance with the Section 30(6) of the Code for its approval on December 15, 2020. This is to further intimate you that Hon’ble NCLT has pronounced the order on June 08, 2021 approving the Resolution Plan for the Consolidated Corporate Debtors including the Company, under Section 31 of the Code (“Approval Order”),” Videocon Industries informed the exchanges.
In its notification, Videocon said that the approval order has not yet been published and is awaited. Upon the approval order being made available by the NCLT, Videocon would make appropriate disclosures as required. It will also make the appropriate disclosures with respect to delisting of shares upon receipt of the copy of the approval order by the NCLT.
Videocon Industries’ financial creditors had filed claims of Rs 59,452 crore, of which claims worth Rs 57,444 crore were admitted, as on November 12, 2018, showed filings on the company’s website.
The Videocon Group comprises other assets, apart from its core consumer durables manufacturing unit, including a venture in the telecommunications sector. With the court’s approval, lenders had clubbed the 13 entities of the Group together for faster resolution.