Videocon admitted for bankruptcy proceedings, Dhoot says banks to recover 80% debt

The NCLT has on Wednesday admitted Videocon Industries under the Insolvency and Bankruptcy Code, and the debt-ridden firm is hopeful that its lenders will be able to recover up to 80 per cent of the Rs 20,000-crore debt.

The company in April had approached the principal bench of the National Company Law Tribunal (NCLT) requesting it to direct all insolvency cases filed by its lenders to be heard together. Confirming the NCLT admission, Videocon Industries' chairman Venugopal Dhoot told PTI, "We hope that the banks will recover nearly 70-80 per cent of total loan of Rs 20,000 crore. We would like to have a situation where the entire process is seamless and within the stipulated time frame of 180 days."

Hoping that the working capital requirement is addressed at the earliest, Dhoot said, "The brand Videocon continues to be a respected trademark and promoters will help them in projecting the brand." "We would like the IRP (insolvency resolution professional) to take care of the interest of all our creditors and other stakeholders in the best possible way. We will extend our full cooperation," he added. Dhoot said the company has substantial assets, including interests in oil assets abroad, and the uptrend in crude prices bodes well for the group. NCLT today also announced that Anuj Jain of KPMG will be the interim resolution professional for the case. Jain will have 180 days to turn around the company, with an option to extend the timeline by 90 days, failing which the firm will have to go for liquidation.