Videocon Industries shares hit upper circuit; company to get delisted
Videocon Industries informed as per the terms of the Resolution Plan, the equity shares of the Company are proposed to be delisted
Shares of Videocon Industries were locked in the upper circuit on Wednesday at Rs 6.43 apiece after bankruptcy court NCLT (National Company Law Tribunal) allowed billionaire Anil Agarwal’s Twin Star Technologies to take over bankrupt firm for about Rs 3,000 crore.
Twin Star, a part of Vedanta Group, will pay around Rs 500 crore within 90 days as upfront payment and the rest as non-convertible debentures over a period of time.
A two-member Mumbai bench of the NCLT comprising members – H P Chaturvedi and Ravikumar Duraisamy – approved the resolution plan by Twin-Star Technologies.
Confirming the development, Partner at Shardul Amarchand Mangaldas Anoop Rawat told PTI: “The NCLT has today approved the resolution plan” filed by Twin Star Technologies. Rawat was assisting the resolution professional of Videocon Industries into the matter.
Videocon Industries also confirmed the development through a regulatory filing.
Videocon Industries further informed, “in terms of the Resolution Plan, the equity shares of the Company are proposed to be delisted”.
The CoC (Committee of the Creditors) of Videocon Industries had voted in favour of the resolution plan of Twin Star Technologies Ltd, for 13 group companies with 95% votes on December 11, 2020.
Later, the resolution Plan, as approved by the CoC, was filed with the NCLT for its approval on December 15, 2020.
NCLT has conducted a consolidated corporate insolvency resolution process by combining Videocon Industries and other 12 Videocon group companies.
Videocon Industries owes around Rs 31,000 crore to the banks, which also includes interests.
Earlier, the Dhoot family had offered to pay Rs 30,000 crore to lenders to settle their outstanding loans and pull out 13 Videocon group companies from the insolvency proceedings.
However, the creditors have chosen Vedanta Group’s offer, which has placed its resolution plan through one of its subsidiary companies. Dhoot’s settlement offer was made for 13 out of the 15 Videocon group companies, which are jointly going through the Corporate Insolvency Resolution Process (CIRP). Two group companies — KAIL and TREND — were not covered under the offer.