MUMBAI: The National Company Law Tribunal (NCLT) has endorsed extremely rich person Anil Agarwal's Rs 3,000-crore offer for the obligation ridden Videocon Group. The proposal by Twin Star Technologies, an organization possessed by Agarwal, is against the more than Rs 46,000-crore obligation of the Videocon Group.
The exchange, when finished, will be Agarwal's third resource buy under the Indian insolvency code after Electrosteel Steels and Ferro Alloys Corporation.
Banks of Videocon Group, including 13 elements, had looked for NCLT's gesture after they acknowledged Agarwal's proposition in December a year ago. In 2019, NCLT had permitted consolidating numerous chapter 11 procedures against 13 Videocon Group organizations into one. The NCLT gesture for Agarwal's proposition accompanies riders. One of these is that installment to the contradicting moneylenders should be a need. This is the principal combined gathering goal under the insolvency course.
Videocon Group, with interests in purchaser apparatuses and oil, was driven into chapter 11 out of 2017 after it defaulted on advances.
Its past advertiser, the Dhoot family, had offered to clear the advances in a bid to haul the 13 organizations out of chapter 11 procedures. Be that as it may, the moneylenders turned down the Dhoots' proposition and picked Twin Star's offered for Videocon.
Agarwal was keen on Videocon as his Vedanta Group holds a 23% stake in the Ravva oil field. What's more, when the Videocon exchange is finished, Vedanta's stake in the oil field will increment to 48%, accordingly turning into its biggest investor. Public area organization ONGC holds 40% in the Ravva oil field. The normal yield from the Ravva field was 14,232 barrels of oil comparable each day in monetary 2020.
Strangely, Vedanta has shown revenue in purchasing Bharat Petroleum Corporation (BPCL), in which the public authority intends to sell its 53% stake. Vedanta's advantage in BPCL is driven from the cooperative energies with its oil and gas business.
The over three-year delay in the obligation goal of Videocon features the difficulties looked by moneylenders to recuperate their cash even as the Covid pandemic takes steps to add to terrible advances.