NEW DELHI: Videocon Industries Ltd and as many as 11 group firms are set to go under the hammer. The Resolution Professional appointed to oversee the insolvency of the group on Tuesday invited bids for the debt-ridden firm, which has interests ranging from consumer electronics to oil and gas.
The bidding process under the Insolvency and Bankruptcy Code (IBC) will commence now, following an order by the National Company Law Tribunal (NCLT) Mumbai on June 6, 2018. According to Resolution Professional Anuj Jain, the process will begin shortly for other four group entities as soon as the relevant orders are passed by the NCLT. The firm has a debt of around Rs 20,000 crore.
Meanwhile, resolution professional for another erstwhile heavyweight under the Videocon umbrella, Videocon Telecommunications, also invited bids from prospective buyers.
A consortium of 31 lenders, including State Bank of India, has claimed that VTL has debt exposure of around Rs 20,551 crore. However, NCLT admitted claims of 19 lenders amounting to around Rs 18,406 crore.
SBI had maximum exposure to the debt with claim of Rs 4,605 crore, followed by Central Bank of India (Rs 3,073 crore), Bank of Baroda (Rs 1,875 crore), Corporation Bank (Rs 1,710 crore), Canara Bank (Rs 1,401 crore), ICICI Bank (Rs 1,349 crore) and Punjab National Bank (Rs 1,027 crore).
The other banks and institutions with high debt exposure to VTL include Union Bank of India (Rs 971 crore), Dena bank (Rs 799 crore), IFCI (Rs 479 crore), LIC (Rs 480 crore), Syndicate Bank (Rs 786 crore), Union Bank of India (Rs 371 crore), Indian Overseas bank (Rs 127 crore), Uco Bank (Rs 80 cr) and Vijaya Bank (Rs 86 crore).