The Mumbai bench of the National Company Law Tribunal has approved Twin Star Technologies’ resolution plan for Videocon Industries Ltd. The approval comes with certain riders, one of them being that the dissenting creditors will have to be paid upfront.
Part of Anil Agarwal’s Vedanta Group, Twin Star Technologies is offering Rs 2,962 crore against Videocon’s overall debt of around Rs 46,000 crore. In 2019, the NCLT had allowed for consolidation of insolvency proceedings against 13 entities of the Videocon Group.
Legal adviser for the resolution professional Anoop Rawat, partner at Shardul Amarchand Mangaldas, told BloombergQuint that this judgment sets a precedent for successful resolution via consolidated insolvency proceedings. “The consolidation is not merely procedural but rather substantive.”
The oral order was pronounced by a division bench comprising Justice HP Chaturvedi and Justice Ravikumar Duraisamy. The detailed order of the NCLT is awaited.
In December 2017, State Bank of India had filed an insolvency petition against Videocon Industries. Separate bankruptcy proceedings were also initiated against 15 Videocon Group companies. The tribunal had excluded two Videocon Group entities — KAIL Ltd. and Trend Electronics Ltd. — from the scope of consolidation. Abhijit Guhathakurta was appointed as the resolution professional for the group insolvency process.
In December 2020, the committee of creditors had rejected promoter Venugopal Dhoot’s settlement proposal.