Companies

NCLAT stays acquisition of Videocon Group by Twinstar Technologies

Our Bureau Mumbai | Updated on July 19, 2021

In an appeal, the Bank of Maharasthra alleged that the RP provided for payment through NCDs and equities are not permissible under IBC.

The National Company Law Appellate Tribunal (NCLAT) has stayed the acquisition of Videocon group by Vedanta group’s Twinstar Technologies through the insolvency process, on an appeal filed by the Bank of Maharashtra.

The bank had alleged that the resolution plan provided for payment to the dissenting financial creditors through non-convertible debentures (NCDs) and equities, which is not permissible under IBC. Bank of Maharashtra has an exposure of ₹1,216.88 crore to the Videocon Group.

The NCLT had earlier approved the offer made by Tiwnstar technologies but had expressed surprise that the bid placed by the Vedanta Group entity for acquiring 13 companies under the Videocon Group was almost the same value arrived at by the registered valuers for liquidation.

According to the valuation reports, the fair value of the Videocon group was ₹4,069.95 crore, while the liquidation value was ₹2,568.13 crore. Twin Star Technologies, under Anil Agarwal’s Vedanta group, has offered ₹2,962.02 crore to acquire Videocon.

Published on July 19, 2021

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