Videocon Group's former promoter, Venugopal Dhoot, has moved the National Company Law Appellate Tribunal (NCLAT) against the NCLT's approval to the bid of Twinstar Technologies for Videocon Industries Ltd.
Along with the plea to set aside the resolution plan of Vedanta Group firm Twinstar, Dhoot has also urged the appellate tribunal to direct the Committee of Creditors (CoC) to consider his resolution plan, that entails "zero haircut", under Section 12A of the Insolvency and Bankruptcy Code.
In his petition, Dhoot said: "NCLT Mumbai, by order dated 15/12/20, held that foreign oil and gas assets of Videocon Group held through its foreign subsidiaries, are in fact purchased by Videocon Industries Ltd (VIL) and are to be treated as assets of VIL. The liquidation value of these oil assets is not less than Rs 15,000 crore."
"As such, RP/COC has no authority to sell oil assets and consumer durables, separately. If RP (resolution professional) has sold oil and consumer durables together, RP would have got minimum Rs 25,000 crore against loan of Rs 49,000 crore (Rs 29,000 crore of VIL consumer durables and Rs 20,000 crore of oil assets). Thus, recovery would have been around 50 per cent and not 5 per cent as seen today," he said.
According to him, the RP should have mentioned these facts in information memorandum (tender form) to all the bidders, but he failed to do so, which is violation of the IBC.
This restructure proposal was approved by the CoC in October 2017.
Videocon has now requested, in its appeal, that this resolution plan to be cancelled and fresh resolution plan to be considered with oil and consumer durable assets.
Dhoot, in his proposal submitted to the banks, has offered to pay the whole loan of Rs 30,000 crore to the bank and take back the company.
According to Dhoot, the resolution professional has been responsible for diminishing the value of Videocon Group by closing it down and not running the factory.
Prior to being admitted into insolvency, Videocon Group, in accordance with the corrective action plan, decided to sell assets and ensure that the entire consideration is directly deposited with the consortium of lenders for repaying the debt facilities without bringing in the technical aspects, with a larger interest and intention to repay entire possible amount, he said.
Further, Videocon Group was ready and willing to sell all its remaining assets including the assets of the promoters to service the debts through the agencies appointed by the consortium of the lenders, he said in the petition.
The petition added that the appellant has always worked in the interest of stakeholders and is still willing to resolve the debt and provide better returns to the stakeholders.
"It is submitted that a similar proposal was submitted by Appellant in the CIRP of Corporate Debtor under Section 12A of the Code, however, the CoC, being unbending and irrational, has rejected the proposal of appellant to the tune of Rs 31,789 crore, and has accepted the Resolution Plan of Twin Star which provides payment of only Rs 2,962 crore," he said.
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