A consortium of lenders led by State Bank of India (SBI) has sought bids from consultants who will validate the costs associated with the running of Videocon Oil Ventures’ (VOVL) upstream oil and gas assets in South America and South East Asia. According to a bid document, the cost validation and valuation processes will be carried out as the company has sought fresh funding from its lenders.
“To meet the cash call and expenditure requirements in relation to the project, the company has requested the lenders to provide funding pursuant to the existing credit facilities provided by lenders to the company,” the document said. “In this regard, the appointment of a consultant is proposed to (i) validate the costs estimated in relation to the project, up to the final investment decision (FID) stage of the major concession within the above-mentioned upstream oil and gas assets; and (ii) carry out the valuation of the above mentioned upstream oil & gas assets, which will serve as input/basis for the lenders to decide on the monetisation of these oil & gas assets,” it added.
SBI Capital Markets (SBICaps) has been appointed and mandated by the lenders’ consortium to invite and identify prospective consultants for the exercise. The other members of the consortium include Bank of India, Export-Import (Exim) Bank of India, Central Bank of India, IDBI Bank, ICICI Bank and Union Bank of India.
The last date for submission of bids is July 16. Last month, the Mumbai bench of the National Company Law Tribunal (NCLT) had admitted Videocon Industries under the Insolvency and Bankruptcy Code (IBC). The firm owes lenders around Rs20,000 crore. The company in April had approached the principal bench of the NCLT, requesting it to direct all insolvency cases filed by its lenders to be heard together.