Videocon insolvency: Creditors to take 96% haircut on loans; NCLT says bidder ‘paying almost nothing’

The NCLT has observed that the creditors of debt-ridden Videocon Industries Limited will be taking a haircut of nearly 96 per cent on their loans and the bidder is “paying almost nothing” for the company.

Creditors of debt-ridden Videocon Industries Ltd will be taking nearly 96 per cent haircut on their loans and the bidder is “paying almost nothing” for the company, NCLT has observed while approving Anil Agarwal''s Twin Star Technologies'' Rs 2,962.02 crore-bid under the insolvency resolution process. Videocon Industries and its 12 group companies had a total admitted claims of Rs 64,838.63 crore. The Mumbai bench of the National Company Law Tribunal has also observed that the resolution plan is giving 99.28 per cent to the operational creditors, which it sarcastically hinted to be as a "Hair cut or Tonsure, Total Shave". It has requested the Committee of Creditors (CoC) and Twin Star Technologies to increase the pay-out amount to these operational creditors as they are getting only 0.72 per cent of their admitted claim amount.