Venugopal Dhoot has filed with the National Company Law Appellate Tribunal against a ruling calling out mining tycoon Anil Agarwal’s offer for Videocon Industries Ltd.
Dhoot, former promoter of the Videocon group, is requesting the repeal of the winding-up plan approved by the National Company Court in June and instructing the creditors’ committee to review its winding-up plan submitted under Section 12A of the Bankruptcy and Bankruptcy Act proposing zero haircut.
The settlement process at Videocon Industries Ltd. got into unexpected turmoil after NCLAT halted implementation of the Agarwal-owned Volcan Group’s wind-up plan. Bankers are now keen to negotiate the repayment plan proposed by the buyer.
The intervention of the appellate court could cause the creditors’ committee to review its views on the Volcan Arm Twin Star Technologies Ltd. offer. to revise for Videocon.
In July, the appeals court ruled over objections from the Bank of Maharashtra and IFCI Ltd. suspended the decision of the NCLT bank in Mumbai on June 8 to approve the offer. Twin Star had agreed to pay Rs 2.900 billion against more than Rs 61,000 billion to Videocon’s financial creditors – a recovery rate of less than 5%.
Dhoot claimed in his petition that the overseas oil reserves were purchased from the Videocon Group through its subsidiaries in accordance with the December regulation of NCLT Mumbai.
He said the liquidation value of his overseas oil and gas assets is no less than Rs.15,000 billion and the liquidation expert or creditors’ committee has no authority to sell oil assets and consumer durables separately.
“If the liquidation professional had sold oil and durable consumer goods together, the liquidation professional would have said at least 25,000 billion, and added up the recovery would have been around 50%.
Dhoot had offered to repay Rs 30,000 billion bank loans and repossess the company under the proposal in Section 12A, but since the company went to NCLT, its proposal was rejected by the creditors’ committee.