Videocon Ind hits the roof after NCLT OKs Vedanta's bid

Videocon Industries hit an upper circuit of 5% at Rs 6.43 after the the National Company Law Tribunal (NCLT) approved the resolution plan of Twin Star Technologies.

Twin Star Technologies is a Vedanta Group company. Shares of Vedanta were up 1.06% at Rs 276.10 on the BSE.

Early in December 2020, the Committee of Creditors (CoC) of Videocon had approved the resolution plan submitted by Twin Star Technologies with 95.09% votes. The plan was then filed for NCLT approval on 15 December 2020.

"NCLT has pronounced the order on June 8, 2021 approving the resolution plan for the consolidated corporate debtors, including the company, under Section 31 of the Code (Approval Order)," Videocon Industries said in a regulatory filing. "As per the terms of the resolution plan, Videocon Industries will be delisted," it added.

 

Videocon Group, with interests in consumer appliances and oil, was reportedly pushed into bankruptcy in 2017 after it defaulted on loans. The company's financial creditors had filed claims of Rs 59,452 crore, of which claims worth Rs 57,444 crore were admitted, as on 12 November 2018.

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 reportedly clubbed the 13 entities of the Group together for faster resolution.

Its erstwhile promoter, the Dhoot family, had reportedly offered to clear the loans in a bid to pull the 13 companies out of bankruptcy proceedings. But the lenders turned down the Dhoots' proposal and chose Twin Star's bid for Videocon, reports suggested.

Videocon Industries holds 25% stake in the Ravva oil field, in which Vedanta, through Cairn India, holds 22.5% shareholding. The acquisition may help Vedanta pick up additional stake in the oil field. Cairn India was merged with Vedanta in 2018. Public sector company ONGC holds 40% in the Ravva oil field.

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