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  1. SBICap seeks buyers for Videocon Oil Ventures’ overseas oil, gas assets

SBICap seeks buyers for Videocon Oil Ventures’ overseas oil, gas assets

The sale will be carried out to monetise upstream oil and gas assets located in South America (deep offshore blocks) and Southeast Asia (shallow offshore blocks) belonging to VOVL, which is a subsidiary of Videocon Industries

By: | Mumbai | Published: October 9, 2018 2:09 AM
In July, SBICap had sought bids for the appointment of consultants who would validate the costs associated with the running of VOVL’s upstream oil and gas assets in South America and Southeast Asia. (Reuters)

SBI Capital Markets (SBICap) has sought expressions of interest (EoIs) for the sale of overseas oil and gas assets owned by Videocon Oil Ventures (VOVL) on behalf of a consortium of lenders led by State Bank of India (SBI), according to sources.

The sale will be carried out to monetise upstream oil and gas assets located in South America (deep offshore blocks) and Southeast Asia (shallow offshore blocks) belonging to VOVL, which is a subsidiary of Videocon Industries. The parent company is currently undergoing the corporate insolvency resolution process (CIRP).

In response to an email sent by FE, the resolution professional (RP) for Videocon Industries, Anuj Jain, declined to comment.

In July, SBICap had sought bids for the appointment of consultants who would validate the costs associated with the running of VOVL’s upstream oil and gas assets in South America and Southeast Asia.

VOVL is understood to be one of the accounts that were to be resolved by August 27 as per the Reserve Bank of India’s (RBI) February 12 circular.

The circular directs banks to initiate insolvency proceedings against large non-performing assets (NPAs) if they are not resolved within a 180-day window. Lenders to VOVL are reported to have sought the RBI’s permission to suspend debt resolution proceedings against it for two years.

Financial creditors of Videocon Industries had filed claims worth Rs 58,731 crore as on July 6, of which claims worth Rs 57,164 crore were admitted. SBI had claimed Rs 11,175 crore, of which Rs 10,944 crore was admitted. Other lenders with large claims were IDBI Bank, which saw Rs 9,504 crore of its Rs 9,562-crore claim being admitted, and Central Bank of India that claimed Rs 5,064 crore and saw Rs 4,969 crore being admitted.

On January 1, SBI had filed an insolvency petition against Videocon Industries in the Mumbai bench of the National Company Law Tribunal (NCLT), claiming that the company had defaulted on facilities worth Rs 498.63 crore extended by the bank and its former associates. The petition was admitted on June 6.

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