The newly appointed resolution professional (RP) for Videocon has sought an expression of interests (EOI) from a total of 13 group companies undergoing insolvency through a document seeking bids under the Insolvency and Bankruptcy Code 2016.
This news was introduced after the Mumbai bench of the National Company Law Tribunal (NCLT) said that the insolvency of all the group company shall be conducted together and approved the consolidation of the insolvency processes on August 8, 2019 and also ordered for the change of the resolution professional on September 25, 2019.
The committee of creditors (CoC) led by the State Bank of India voted for Abhijit Guhathakurta to be the new RP instead of Mahendra Khandelwal by a majority of 93.5%.
The document used to seek expression of interest reads that all the interested and eligible applicants for resolution are invited to submit an expression of their interest in order to formulate a resolution plan for the consolidated corporate debtors.
Before the order for consolidation was passed, the claims from the financial creditors of the company stood at Rs. 59, 451.87 crore out of which SBI’s claim was Rs. 11, 175.25 crore alone. The lenders include SBI, Bank of Baroda, Bank of Maharashtra, IDBI Bank, Indian Overseas Bank, Canara Bank, and Bank of Allahabad.
The 13 group companies include Videocon Industries Ltd., Videocon telecommunications Ltd., Electroworld Digital Solutions Ltd., Century Appliances Ltd., Evans Fraser and Co. Ltd., CE India Ltd., PE Electronics Ltd., and Sky Appliances Ltd. among others.
Between June 6, 2018 and September 25, 2018, the NCLT Mumbai bench had ordered for the corporate insolvency proceedings against many group companies after SBI filed an application before the tribunal. The annual report of Videocon’s Financial Year 2018, the dragging of the company to the NCLT had the customers and dealers thinking about the after sales services from the company. This made the company to offer those customers and dealers an additional discount and certain incentives which resulted the company in incurring even more losses.