Videocon’s Resolution Professional Seeks Expressions Of Interest For 13 Firms Under Insolvency & Bankruptcy Code

The Videocon Group’s newly appointed resolution professional has sought expressions of interest (EoI) for 13 group companies undergoing resolution using the Insolvency and Bankruptcy Code (IBC).

A document seeking bids has been released after the Mumbai bench of the National Company Law Tribunal (NCLT) approved consolidation of the separate resolution processes as well as the change of resolution professional.

The document which is out has stated that interested and eligible prospective resolution applicants are invited to submit expression of interest for submission of resolution plan for the consolidated corporate debtors.

The process would be pursuant to provisions of the IBC and the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, as amended and the NCLT order, it stated.

Among the twenty lenders to the 13 Videocon Group companies are Allahabad Bank, IDBI Bank, Indian Overseas Bank, Jammu & Kashmir Bank, Bank of Maharashtra, Bank of Baroda, United Bank of India and Canara Bank.

The 13 companies under the consolidated process are Videocon Industries Ltd, Videocon Telecommunications Ltd, Electroworld Digital Solutions Ltd, Century Appliances Ltd, Evans Fraser and Co. (India) Ltd, CE India Ltd, PE Electronics Ltd, Sky Appliances Ltd, among others.

As per the document, for a potential resolution applicant that is a private or public limited company, limited liability partnership (LLP) or individuals, the minimum tangible net worth must be Rs 100 crore.

Besides this condition, for financial investors, the minimum assets under management or funds deployed should be Rs 200 crore.

It may be recalled that the Mumbai bench of the NCLT had initiated corporate insolvency proceedings against several companies of the group after SBI referred them to bankruptcy court, between 6 June and 25 September, 2018,