Videocon: In 2019, Videocon’s debt was more than Rs 63,500 crore. Vedanta Group company Twin Star will make an advance payment of about Rs 500 crore within 90 days.
Billionaire Anil Agarwal
The bankruptcy court of NCLT allowed billionaire Anil Agarwal’s company Twin Star Technologies to acquire Videocon Industries for Rs 3,000 crore. Vedanta Group company Twin Star will make an advance payment of around Rs 500 crore within 90 days and pay the rest in the form of non-convertible debentures within a period of time.
The completion of the transaction will be Agarwal’s third asset purchase under the Indian Bankruptcy Code after Electrosteel Steels and Ferro Alloys Corporation.
Twin Star Technologies’ proposal approved
A two-member Mumbai bench of the National Company Law Tribunal (NCLT) approved the proposal plan of Twin Star Technologies. The bench included HP Chaturvedi and Ravikumar Duraisamy.
Confirming the development, Anoop Rawat, Partner at legal services firm Shardul Amarchand Mangaldas said, “NCLT today approved the resolution plan filed by Twin Star Technologies. Videocon Industries’ resolution professional was assisting in Rawat’s case.
Videocon owes Rs 63,500 crore
According to the disclosure related to the bankruptcy case on the company’s website, in 2019, Videocon’s debt was more than Rs 63,500 crore. Out of this, Rs 57,400 crore was outstanding on more than three dozen banks and other financial creditors.
Videocon owes Rs 10,944 crore to the country’s largest bank SBI, IDBI Bank Rs 9,504 crore, Central Bank Rs 4,969 crore, ICICI Bank Rs 3,295 crore and Union Bank Rs 2,515 crore.
Vedanta has shown interest in Videocon group companies as it holds a 25 per cent stake in the Rawa oil field. After this acquisition, Vedanta will have 47.5 per cent stake in Rawa oil field. With this, it will become a bigger shareholder than ONGC’s 40 per cent stake. ONGC holds 40 per cent stake in Rava oil.
Videocon was started in 1986
Let us tell you that Videocon Industries was started in September 1986. After this it became the first company in India to get a license to manufacture color TVs. In the year 1990, the company expanded its portfolio and started manufacturing ACs, Washing Machines and Refrigerators.
In the year 2020, the group forayed into Oil & Gas, Telecom, Retail and DTH TV. The company borrowed for these projects and the interest burden on it increased. In the year 2016, the group tried to divest the business and sold Videocon d2h to Dish TV.
read this also- VRS can be offered to 83 thousand employees of these two government banks, the government has decided to privatize