The National Company Law Tribunal (NCLT) has approved Vedanta Group’s subsidiary Twin Star Technologies Limited’s resolution plan for Videocon Group. This is the first consolidated group resolution since the inception of the Insolvency and Bankruptcy Code (IBC).
According to NCLT, the resolution plan is approved, subject to the payment to the dissenting financial creditors which should be paid on priority basis as per the laws. The lenders should also consider the payment of the salaries to its employees.
Vedanta’s offer of over Rs 30 billion for 13 companies belonging to the Videocon Group was far below the expectations of lenders, however, slightly above the liquidation value. These 13 companies were Videocon Industries (VIL), Videocon Telecommunications Limited (VTL), Evans Fraser and Company (India), Millennium Appliances India, Applicomp (India) Limited, Electroworld Digital Solutions, Techno Kart India, Century Appliances, Techno Electronics, Value Industries, PE Electronics, CE India Limited and Sky Appliances Limited.
The Videocon Group was undergoing consolidated corporate insolvency, where Videocon Industries’ admitted claims stand at over Rs 617.7 billion to its financial creditors. Deloitte was an advisory firm to the resolution professional in running the process.