Videocon insolvency: Twin Star Tech opposes plea for fresh bid

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Updated: September 29, 2021 8:18 AM

On behalf of the committee of creditors (CoC), SBI had on September 18 urged the National Company Law Appellate Tribunal (NCLAT) to allow fresh bids for Videocon in the “larger public interest” and to “ensure that public money is secured in the best possible manner”.

videoconIn its resolution plan, Twin Star has offered to pay Rs 2,962.02 crore on admitted claims of Rs 64,838.63 core.

Vedanta Group firm Twin Star Technologies, the approved bidder for the insolvent Videocon Industries, has opposed lead banker State Bank of India’s (SBI) plea for inviting fresh bids on the ground of paltry pay-out. It has termed the demand as “misconceived, non-justiciable and neither maintainable in fact nor in law”.

On behalf of the committee of creditors (CoC), SBI had on September 18 urged the National Company Law Appellate Tribunal (NCLAT) to allow fresh bids for Videocon in the “larger public interest” and to “ensure that public money is secured in the best possible manner”.

In its resolution plan, Twin Star has offered to pay Rs 2,962.02 crore on admitted claims of Rs 64,838.63 core. This amounts to a 95% collective haircut on the exposure of the banks.

In the reply-affidavit, submitted before the NCLAT on September 24, Twin Star criticised SBI for approaching the NCLAT after a lapse of more than three months since the NCLT approved the plan, even as it had complete knowledge of the haircut when it voted in its favour. It also said once a resolution plan is approved by the adjudicating authority, the CoC becomes functus officio, as per the law. Alleging that SBI “deliberately chose to conceal in its affidavit that the resolution plan of Twin Star provides amounts in excess of the liquidation value of the corporate debtor (Videocon)”, Twin Star said, “Pertinently, no lender has questioned the calculation of the liquidation value”. The matter is scheduled for hearing before the NCLAT on September 30.

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