Mumbai: National Law Appellate Tribunal Law (NCLlat) has set aside an order by the Mumbai bench from Tribunal National Law (NCLT) which approved the resolution plan for Videocon by Vedanta twin-star technology.
Tribunal has requested a creditor committee for a new offer.
The Appellate court issued orders noted that transactions were not in accordance with the bankruptcy and bankruptcy code (IBC).
The order was in appeal last year submitted by Maharashtra Bank, Sidbi and IFCI which distinguish creditors.
The resolution plan has turned controversially and attracts sharp comments from NCLT because the offer is close to the liquidation value and involves deletion of 95%.
NCLT has agreed to the order in June 2021 noted that a successful bidder is “paying almost nothing” and implies that there seems to be a violation of the confidentiality clause.
A toi banker spoke by saying that Vedanta’s resolution plan was as good as lenders themselves looking for rebid.
SBI, the largest financial creditors, owned in September 2021 approached the appeals court that was looking for rebid.
SBI, which has about 18% of voting, has quoted observations carried out in the NCLT order of haircuts suffered by various creditors’ classes.
In July 2021, NClat had only been the sale of group companies to Twinshar.
Unening creditors have objected to the agreement showing that lenders get less than 5% of recognized claims and even this little amount is not paid in advance but mostly in the form of debt with a little cash in.
Even as Twinstar’s offer lives in NClat, the Corporate Affairs Ministry has moved and submitted a petition at NCLT to attach video promoter assets to increase recovery in this case.
In August 2021, NCLT issued orders to freeze and attach assets and properties of video promoters.
The court also directed the direct tax center (CBDT) to disclose information about all Videocon promoter assets to freeze and hold these assets.
Also asked the bank to provide bank details and their depositors and lockers.
Magnate Metal Anil Agarwal’s Vedanta Group has a big plan for the electronic segment – where most of India’s big names have been removed from business.
The company had previously announced plans to establish flat screen manufacturing facilities in India through Twinstar Display Technologies.
Recently, the company has talked about investing in chip fabrication facilities in this country.