NCLT Okays Vedanta Group Firm's Bid for Videocon Industries
The National Company Law Tribunal (NCLT) has approved the resolution plan of Twin Star Technologies Limited, a Vedanta Group company, to acquire the bankrupt Videocon Industries.
 
The committee of creditors (CoC) of Videocon had approved the plan last year with 95.09% votes. The plan was then filed with the NCLT for its approval on 15 December 2020.
 
"NCLT has pronounced the order on 8 June 2021 approving the resolution plan for the consolidated corporate debtors, including the company, under Section 31 of the Code (Approval Order)," Videocon Industries said in a regulatory filing.
 
As per the resolution plan, the equity shares of the company would be delisted. Twin Star will pay Rs3,000 crore and another Rs500 crore cash lying with the company will also be given to the banks.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Comments
arjunmohnot
3 months ago
Zero to Public Shareholders Called as Successful NCLT Resolution: Who is Behind Video in Videocon?

It is very surprise for all the NCLT matters including recent Videocon Group of Companies judgement pronounced on 8th June 2021 and declared on 14th June 2021 by the NCLT Mumbai, the zero amount to public shareholders is called as successful resolution after three years. Why such long time is taken for resolution with target of zero to public shareholders in all the NCLT matters. The courts are relying on the bankers, but we should not believe the same bankers for their commercial wisdom who have not given the loans wisely.

The shares and securities are just like currency and atleast its face value should be payable to the public shareholders as minimum amount against resolution. The erstwhile promoter Mr. Dhoot was ready to pay full amount of Rs. 31000 Crores in instalments with interest, but our wise bankers have accepted less than 10 percent i.e. Rs. 2962 Crores in instalments from newly formed M/s Twin Star Technologies Ltd. (Vedanta Group Company) with zero amount to the public shareholders as achievement. For the public shareholders they are considering nil amount and for bankers any percentage just above liquidation value is welcome because they have not invested from own pocket and never realised the value of public money who have invested unconditionally through approved IPO with high premium for the development of the country.

The importance of initial amount of the public and the bankers are same. But the concern authorities including bankers, NCLT, SEBI, etc. are not working in the interest of public. So far, they are not able to justify their role for the public in the resolution matters under IBC. The higher authorities should intervene to protect the public money and faith in the financial system.

The SEBI has made the Delisting of Equity Shares Regulations, 2021 dated 10th June 2021 but still it is not applicable for NCLT matters. They could have also made regulations for protecting public shareholders for the companies under NCLT or IBC matters, but SEBI is busy for charging penalties on decade old insider trading matters without sharing this amount to the public who were affected during that trading.

After judgement, NCLT Mumbai has raised the doubts over confidentiality clause for liquidation value for Videocon Group resolution. The NCLT has questioned the IBBI that how the resolution proposal is just close to the confidential liquidation value. This objection is published in all the print media on 16th June, 2021. It means NCLT itself is not satisfied with the commercial aspect of own order and the resolution proposed by the bankers.

After the CoC meeting dt. 11th Dec., 2020, ET has published a news dated 12th December, 2020 that the Vedanta has offered Rs. 5000-6000 Crores. But, suddenly two days after again CoC meeting was held and ET has published a news dt. 14th December, 2020 that Vedanta Group Company Twin Star has now offered total Rs. 3500 Crores.

What is the reason for this manipulation of about Rs. 2500 Crores within two days in December 2020. It means liquidation value of Rs. 2568/- (as published in Moneylife dt. 16th June, 2021) was revealed to the buyer and he was facilitated by the CoC to revise downward the offer amount.

The above facts and the doubt of NCLT after the order raises the question mark that who is behind the video in Videocon Group resolution. This doubtful resolution should be cancelled in public interest and to protect the public shareholders in NCLT and other matters.
arjunmohnot
3 months ago
May God fail their plans who have not considered the public shareholders in the resolution. How bankers can get the shares in place of public. This may be a gift to the bankers for leakage of confidential liquidation value so that buyer can save money by bidding just above it. The two news of ET dt. 12th and 14th December 2020 indicate that CoC and bankers have facilitated the buyer to reduce the bid amount from Rs. 6000 Cr to 3500 Cr within two days including some equity to the bankers. After judgement, NCLT Mumbai has also raised this issue of confidentiality to the IBBI on 16th June 2021 but there is no action on the bankers. Hence this invalid resolution of Videocon should be cancelled in public interest. The concern authorities should protect the public shareholders in all the NCLT matters in proportion to the bankers or atleast face value of the shares.
arjunmohnot
3 months ago
May God fail their plans who have not considered the public shareholders in the resolution. How bankers can get the shares in place of public. This may be a gift to the bankers for leakage of confidential liquidation value so that buyer can save money by bidding just above it. The two news of ET dt. 12th and 14th December 2020 indicate that CoC and bankers have facilitated the buyer to reduce the bid amount from Rs. 6000 Cr to 3500 Cr within two days including some equity to the bankers. After judgement, NCLT Mumbai has also raised this issue of confidentiality to the IBBI on 16th June 2021 but there is no action on the bankers. Hence this invalid resolution of Videocon should be cancelled in public interest. The concern authorities should protect the public shareholders in all the NCLT matters in proportion to the bankers or atleast face value of the shares.
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