NCLT approves Rs 3,000-cr bid of Anil Agarwal's Twin Star Technologies for Videocon Industries

Bankruptcy court NCLT on Tuesday allowed billionaire Anil Agarwals Twin Star Technologies to take over Videocon Industries Ltd for about Rs 3,000 crore.Twin Star, part of the Vedanta Group, will pay around Rs 500 crore within 90 days as upfront payment and the rest as non-convertible debentures over a period of time.A two-member Mumbai bench of the National Company Law Tribunal NCLT, comprising members H P Chaturvedi and Ravikumar Duraisamy, approved the resolution plan by Twin Star Technologies.


PTI | New Delhi | Updated: 08-06-2021 21:10 IST | Created: 08-06-2021 21:10 IST
NCLT approves Rs 3,000-cr bid of Anil Agarwal's Twin Star Technologies for Videocon Industries
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Bankruptcy court NCLT on Tuesday allowed billionaire Anil Agarwal's Twin Star Technologies to take over Videocon Industries Ltd for about Rs 3,000 crore.

Twin Star, part of the Vedanta Group, will pay around Rs 500 crore within 90 days as upfront payment and the rest as non-convertible debentures over a period of time.

A two-member Mumbai bench of the National Company Law Tribunal (NCLT), comprising members H P Chaturvedi and Ravikumar Duraisamy, approved the resolution plan by Twin Star Technologies. Confirming the development, partner at law firm Shardul Amarchand Mangaldas, Anoop Rawat told PTI, ''The NCLT has today approved the resolution plan'' filed by Twin Star Technologies.

Rawat was assisting the resolution professional of Videocon Industries in the matter.

The order was pronounced orally by the NCLT bench in the courtroom and a detailed copy of the judgement is awaited.

According to him, it is a remarkable achievement in the field of insolvency and sets a great precedent for cases which merit consolidation.

''It was one of the most complex cases and quite challenging, given the number of companies involved with similar line of business. All the stakeholders involved in the process have tirelessly worked to get a successful resolution,'' Rawat added.

This approval will also now consolidate Vedanta's hold in Ravva oil field. Vedanta's interest in Videocon is principally driven by the latter's 25 per cent stake in the Ravva oil field.

Vedanta, through Cairn, holds 22.5 per cent stake in Ravva and after this success, it will take its stake to 47.5 per cent, and will be the biggest stakeholder ahead of ONGC at 40 per cent.

The average output from the Ravva block in FY20 was 14,232 barrels of oil equivalent per day (boepd). It increased to 22,037 boepd in the first quarter of FY21.

Earlier in December, Videocon's lenders had approved the bid submitted by Twin Star Technologies.

Following that, the resolution plan was moved by the resolution professional before the NCLT.

The Committee of the Creditors (CoC) of Videocon Industries voted in favour of the resolution plan of Twin Star Technologies Ltd for 13 group companies with 95 per cent votes.

Videocon Industries owes around Rs 31,000 crore to banks, including interest.

Earlier, the Dhoot family had offered to pay Rs 30,000 crore to lenders to settle their outstanding loans and pull out 13 Videocon group companies from the insolvency proceedings.

However, the creditors chose Vedanta Group's offer.

Dhoot's settlement offer was made for 13 out of the 15 Videocon group companies which are jointly going through the Corporate Insolvency Resolution Process (CIRP).

Two group companies -- KAIL and TREND -- were not covered under the offer.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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