Videocon’s creditors give nod to Vedanta’s resolution plan

The committee of creditors (CoC) of Videocon has approved the resolution plan of Vedanta Group’s Twin Star Technologies. The Videocon Group was undergoing a consolidated corporate insolvency process for 13 companies. The consolidated debt of the Videocon Group companies was at Rs 61,773 crore as on September 10, 2020.

“The CoC has approved the resolution plan submitted by Twin Star Technologies with 95.09% voting share under Section 30(4) of the Insolvency and Bankruptcy Code (IBC), 2016,” the company said. Lenders have also filed the approved resolution plat at National Company Law Tribunal for its approval.

The 13 companies under the consolidated process include Videocon Industries, Videocon Telecommunications, Electroworld Digital Solutions, Century Appliances, Evans Fraser and Co. (India), CE India, PE Electronics, Sky Appliances, among others. The companies are into three business verticals, namely, oil and gas, telecommunications and consumer electronics and home appliances.

The erstwhile chairman and managing director of Videocon Industries, Venugopal Dhoot, had earlier offered to settle the outstanding loans and pull out 13 Videocon group firms from the insolvency proceedings. However, the lenders rejected his proposal and continued with the insolvency proceedings under IBC.

NCLT had initiated a corporate insolvency process for Videocon group companies between June 6 and September 25, 2018. Later, the court ordered to club insolvency proceedings of all 13 group companies.

SBI is the lead creditor to Videocon group with an admitted claim of Rs 11,151 crore, followed by IDBI Bank which has a claim of Rs 9,920 crore. Similarly, Union Bank has admitted the claim of Rs 5,600 crore, Central Bank of India has a claim of Rs 5,207 crore.