NCLAT adjourns hearing on Videocon lenders’ plea for fresh round of bidding

The adjournment came after solicitor general Tushar Mehta, appearing on behalf of the CoC, sought time to submit a rejoinder to the reply-affidavit filed by approved bidder Twin Star Technologies on the September 18 submission made by CoC seeking rebidding.

State Bank of India, the lead banker in the consortium of lenders, had last week moved the appellate tribunal on behalf of the committee of creditors (CoC) seeking fresh bids for the bankrupt Videocon Industries.
State Bank of India, the lead banker in the consortium of lenders, had last week moved the appellate tribunal on behalf of the committee of creditors (CoC) seeking fresh bids for the bankrupt Videocon Industries.

The National Company Law Appellate Tribunal (NCLAT) on Monday adjourned a hearing on the Videocon Industries’ lenders’ plea seeking a fresh round of bidding for the bankrupt firm till September 30. [auto_compare_body]compare part[/auto_compare_body]

The adjournment came after solicitor general Tushar Mehta, appearing on behalf of the CoC, sought time to submit a rejoinder to the reply-affidavit filed by approved bidder Twin Star Technologies on the September 18 submission made by CoC seeking rebidding.

The two-member NCLAT bench had last week asked the CoC to file the rejoinder within two days. It had also asked other parties to file their written submissions of not more than three pages along with relevant citations before the next date of hearing.

Twin Star Technologies is owned by Volcan Investments, which is an arm of Vedanta Group. The NCLAT had on July 19 stayed Twin Star Technologies winning bid for Videocon Industries on an appeal filed by dissenting creditors Bank of Maharashtra and IFCI. Both the lenders were unhappy with the value being realised through the resolution plan.

Prior to it, though the Mumbai Bench of the National Company Law Tribunal had on June 8 approved the resolution plan of Twin Star Technologies, it had observed that the firm was “paying almost nothing” as the amount offered is only 4.15% of the total outstanding claim. It had noted that the haircut for all the creditors is 95.85% and suggested to both the committee of creditors and the successful applicant to increase the payout.

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