Jindal Power, Adani, Joined the Race to Purchase the Durable Consumer Business of Videocon

Lenders are now anticipating an early resolution of Rs 64,000 crore debt of Videocon as a result of the Adani group’s unexpected entry into the race. The Adani Group and Jindal Power have shown interest in acquiring Videocon’s consumer durables division, which the lenders had put up for sale for the 2nd time.

Lenders are now anticipating an early Rs 64,000 crore debt resolution of Videocons due to the Adani group’s unexpected emergence into the race.

The National Company Law Appellate Tribunal (NCLAT) authorised the 2nd round of bids after the National Company Law Appellate Tribunal (NCLAT) urged CoC to solicit bids again since Vedanta’s bid demanded a 95% haircut on the total debt of Videocon Industries Ltd (VIL). In exchange for VIL’s enormous debt, Vedanta provided Rs 3,000 crore.

Vedanta’s offering to lenders contained a large number of non-convertible debentures. Some lenders moved the NCLAT since the upfront cash amounted to Rs 200 crore. Separately, Reliance Industries has joined a bidding war for VIL’s gas and oil assets.

Videocon Industries, owned by Venugopal Dhoot, possesses 410 acres of land throughout India, including 234 acres within Aurangabad. Venugopal Dhoot has issued a Rs 26,797 crore personal surety, together with his brothers Pradeep Kumar Dhoot and Raj Kumar Dhoot. Adani Complexes, which Gautam Adani owns, is recognised for creating residential and commercial properties. Jindal Power Ltd, a Jindal Steel & Power Ltd unit, is marketed by the O P Jindal Group.

Post the NCLAT found that Twin Star Technologies’ proposal was non-compliant with said Insolvency and Bankruptcy Code; lenders decided to reopen the resolution process (IBC).

Twin Star’s resolution plan was authorised by the NCLT just after 95 percent of lenders voted in support. The settlement procedure was then turned over to the committee of creditors (CoC). The NCLAT decision came in response to the CoC’s claim that now the Twin Star scheme was unworkable. However, the appeal was principally motivated by allegations that Videocon as well as its components were sold for pennies on the dollar. Lenders recovered 4.15 percent of the acknowledged claims totalling Rs 58,519 crore.