After getting rapped for accepting Vedanta group's bid that would give just 5 per cent of their outstanding loans, lenders to Videocon Industries approached the insolvency appellate tribunal NCLAT seeking fresh bids for the debt-laden consumer durable firm. Billionaire Anil Agarwal's Twin Star Technologies had offered £296.2 million to takeover Videocon Industries, which was 4.15 per cent of the admitted claims of £6.48 billion of lenders.
SBI, the leading lender of Videocon Industries, has approached the National Company Law Appellate Tribunal (NCLAT) requesting for a rebidding of the 13 companies of the debt-ridden group, on account of strong observations against £296.2 million takeover bid by Anil Agarwal's Twin Star Technologies.
SBI, on behalf of assenting creditors of Videocon, which represents 94.98 per cent voting had filed an application before the NCLAT requesting to remand back the matter to the Committee of Creditors (CoC) for reconsideration and allow to conduct a fresh process of inviting bids.
A two-member NCLAT bench headed by Justice Jarat Kumar Jain and Kanthi Narahari, Member, has posted the matter for further hearings on September 27. SBI, a lead financial creditor in the CoC with an 18.05 per cent voting share, has said that the Mumbai Bench of the National Company Law Tribunal (NCLT), while approving £296.2 million bid by Twin-Star Technologies has made certain observations over the low-resolution plan and hair-cut suffered by various class of stakeholders.
Even the NCLAT, while granting an interim stay over the resolution plan and NCLT approval, had said that there are "exceptional facts" into the matter. Earlier on June 9, the Mumbai bench of the NCLT had approved takeover bid by Twin Star Technologies for the 13 companies of the debt-ridden group.
However, the NCLT order was stayed by the appellate tribunal on July 19 over the petitions filed by two dissatisfied creditors of the Videocon Group - Bank of Maharashtra and IFCI Ltd and had directed to maintain "status quo ante.” Filing a reply affidavit before the NCLAT, SBI said assertions have been made in the present appeals by the dissenting financial creditors about non-disclosure of their respective share of the liquidation value, which has resulted in them not being able to take a proper and prudent decision.
"The observations of the Adjudicating Authority (NCLT) and the Appellate Tribunal necessitated a reconsideration by the Assenting Financial Creditors of their decision to accept the haircut of 95 per cent, it said.
