The Supreme Court will hear on Friday the petition filed by Vedanta group’s Twin Star Technologies against the National Company Law Appellate Tribunal (NCLAT) stay order on the acquisition of Videocon group.

NCLAT’s decision was based on an appeal filed by Bank of Maharashtra which objected to the debt resolution offer by Twin Star on grounds that the plan provided for payment to the dissenting financial creditors through non-convertible debentures and equities.

Resolution package

Countering the allegations, Senior advocate Gopal Jain, representing Twin Star said the debt resolution package was approved by the Committee of Creditors. “Therefore, the collective wisdom of the lenders have to be upheld. The entities which have challenged the debt resolution offer do not account for more than 3 per cent of the CoC members,” Jain told BusinessLine .

Also read: Videocon’s Venugopal Dhoot moves NCLAT; says Twin Star Technologies’ offer too low

The NCLT had earlier approved the offer made by Twin Star 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. Bank of Maharashtra and IFCI pointed out the NCLT order to show a “breach of confidentiality clause with regard to the liquidation value.”

Jain, however, dismissed the allegations as hearsay. “The NCLT did not state that there was a breach. Therefore, this is only hearsay and has to be proved,” he said.

“There was no case for stopping the debt resolution process. The tribunal could have examined the matter without imposing a stay. By staying the resolution, there is a real danger of Videocon going into liquidation,” Jain added.

Jain said that delay in concluding the debt resolution process will impact all stakeholders including suppliers, vendors, and employees of Videocon.

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