Business Desk: The National Company Law Appellate Tribunal (NCLAT) has stayed the Rs 2,962.02 crore bid by industrialist Anil Agarwal's company Twin Star Technologies to acquire debt-ridden Videocon Industries. A two-member bench headed by NCLAT Acting Chairman Justice AIS Cheema stayed the order passed by the Mumbai bench of the National Company Law Tribunal (NCLT) on June 9 in this regard.
This decision of NCLAT has been taken by two aggrieved lenders Bank of Maharashtra and IFCI Ltd. came on the petitions of The petitioner companies had raised the possibility of a possible breach of confidentiality of the liquidation value during the insolvency process of Videocon Industries. The NCLT in its June 9 order had said that the value of 13 Videocon group companies and resolution plan were surprisingly close.
NCLAT also mentioned that the NCLT in its order had concluded that under the resolution plan of Twin Star, about 90 to 96 per cent of the total debt would suffer loss. Under this scheme, Rs 2,900 crore is proposed to be given against the liability of Rs 65,000 crore. In this way, there will be a loss of about Rs 62,100 crore. In such a situation, the financial lenders will get only five to ten percent of their dues.
Next hearing on September 7 The
Appellate Tribunal has issued notice to the Committee of Creditors (CoC), Videocon's resolution professional and successful resolution applicant Twin Star. The NCLAT has asked everyone to reply in two weeks. The next hearing of the matter will now take place on September 7. Confirming the development, Bank of Maharashtra's advocate Chaitanya B Nikate said that the NCLAT has stayed the order of the NCLT approving the bid.