Videocon Industries case: NCLAT adjourns hearing; stay on resolution plan to continue till Sep 20

By: |
September 07, 2021 9:03 PM

Through an interim order on July 19, the appellate tribunal had stayed the implementation of the resolution plan for Rs 2,962.02 crore-takeover of 13 Videocon group companies.

NCLATOn July 19, NCLAT directed to maintain “status quo ante”.

The National Company Law Appellate Tribunal (NCLAT) on Tuesday adjourned till September 20 the hearing on a batch of petitions challenging the approval for the takeover of bankrupt-Videocon Industries by Anil Agarwal’s Twin Star Technologies.

Through an interim order on July 19, the appellate tribunal had stayed the implementation of the resolution plan for Rs 2,962.02 crore-takeover of 13 Videocon group companies.

The plan was approved through the corporate insolvency resolution process under the Insolvency and Bankruptcy Code (IBC).

A two-member NCLAT bench comprising Justice J K Jain and A K Mishra said the interim order would continue till the next date of hearing, that is September 20.

On July 19, NCLAT directed to maintain “status quo ante”.

The appellate tribunal adjourned the hearing on the matter following a request from Solicitor General Tushar Mehta, who appeared for the Committee of Creditors (CoC).

“Ld. Solicitor General submits that he has advised the SBI, therefore, the appeals may be adjourned to some other date. Ld. Counsels for the Opponents have no objection, therefore, we are adjourning the matter,” NCLAT said.

It has also allowed parties to file written submissions of not more than three pages along with relevant citations before the next date of hearing.

NCLAT was hearing a batch of petitions filed by Bank of Maharashtra, IFCI, Small Industries Development Bank of India and Electrolux Home Products.

Soon after Twin Star Technologies’ resolution plan was approved, concerns were raised regarding creditors taking 90 to 96 per cent hair cut on their exposure. Another concern was that the liquidation value of the 13 Videocon group of companies and resolution plan value were very close.

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