Venugopal Dhoot moves NCLAT against Anil Agarwal's Twin Star takeover bid for Videocon group

Venugopal Dhoot, Videocon Group, national company law appellate tribunal, Insolvency & Bankruptcy Code, Videocon Industries Ltd, Twin Star Technologies

Venugopal Dhoot, former promoter of Videocon Group, has moved before the NCLAT, challenging an order of the insolvency court NCLT approving Rs 2,962 crore takeover bid by Anil Agarwal’s Twin Star Technologies for 13 companies of the debt-ridden group.

Dhoot, in his petition filed before the National Company Law Appellate Tribunal (NCLAT) has requested to set aside the order passed by the Mumbai bench of the NCLT and to direct the lenders to consider Rs 31,789 crore settlement plan submitted by him under section 12 of the Insolvency & Bankruptcy Code (IBC).

In the petition, he has questioned the role played by the Resolution Professional and said that he should have mentioned the foreign oil and gas assets of Videocon Group in the information memorandum (Tender Form) to all the bidders and hence no valuation was considered.

“All assets owned by Videocon Group, particularly oil and gas assets owned by Videocon Industries are not included in Information Memorandum and no valuation thereof has been considered,” he said, adding RP and lenders “were wrong to ignore order of NCLT to treat and include foreign oil and gas assets of Videocon as assets of Videocon Industries Ltd”.

Dhoot has requested NCLT’s order approving Twin Star Technologies’ resolution plan to be cancelled and fresh resolution plan to be considered with Oil and Consumer Durable assets.

“Set aside the Impugned Order dated June 8, 2021 passed by the NCLT and the Respondents (RP & CoC) be ordered to issue fresh IM (Information memorandum -Tender Form )and call for fresh EOI/Resolution Plan for all assets of Videocon group including all foreign oil and gas assets of Videocon group,” Dhoot submitted.

While Anil Agarwal-led Vedanta Group has picked up Videocon Industries for Rs 2,962 crore, the bids for overseas assets are yet to be decided.

Besides, Dhoot also said it needs to be considered as to “whether RP or any other person acting on his behalf has managed the liquidation value and whether the confidentiality has been maintained or it has been leaked to Respondent No 3 (Twin Star Technologies)?”

According to Dhoot, the lenders rejected his proposal to pay Rs 31,789 crore to settle their outstanding loans and pull out 13 Videocon group companies from the insolvency proceedings.

“It is submitted that a similar proposal was submitted by Appellant in the CIRP of Corporate Debtor under Section 12A of the Code, however, the CoC being unbending and irrational has rejected the proposal of Appellant to the tune of Rs 31,789 crore and has accepted the Resolution Plan of Twin Star which provides payment of only Rs 2,962 crore,” Dhoot said in the petition.

According to him, “the Commercial wisdom exercised by CoC is arbitrary and irrational and does not reflect any applicability of mind by rejecting a proposal of Appellant which was 10 times higher and submitted at an early stage of the process.”

Under Section 12A of the IBC, the tribunal can permit withdrawal of an ongoing insolvency process against a company subject to certain conditions. Such application is filed by the company with the approval of 90 per cent voting share of the committee of creditors.

In several high profile corporate insolvency resolution cases such as Essar Steel and DHFL, 12A plea has been rejected.

Earlier on July 19, NCLAT had stayed Rs 2,962 crore takeover bid by Anil Agarwal’s Twin Star Technologies for Videocon Industries group over the plea filed by two dissented creditors – Bank of Maharashtra and IFCI Ltd.

Moreover, NCLT had conducted consolidated resolution process of 13 Videocon group firms for maximisation of the value, which “has not been achieved rather compromised on the face of it.”

The appellate tribunal had stayed the order passed by the Mumbai bench of the National Company Law Tribunal (NCLT) on June 9 and directed to maintain “status quo ante” as before passing of the order, till the next date of hearing.

NCLAT had also directed the RP to continue to manage the Videocon Group companies as per provisions of IBC till the next date.

Earlier, in its 47-page-long judgement, NCLT while approving Anil Agarwal’s Twin Star Technologies’ Rs 2,962.02 crore-bid had observed creditors of debt-ridden Videocon Industries Ltd will be taking nearly 96 per cent haircut on their loans and the bidder is “paying almost nothing”.

The NCLT had observed that the resolution plan is giving 99.28 per cent to the operational creditors, which it sarcastically hinted to be as a “Hair cut or Tonsure, Total Shave”.

It has requested the Committee of Creditors (CoC) and Twin Star Technologies to increase the pay-out amount to these Operational Creditors as they are getting only 0.72 per cent of their admitted claim amount.

Videocon Industries and its 12 group companies had a total admitted claims of Rs 64,838.63 crores.

NCLT had also said a “doubt arises upon the confidentiality” over the liquidation valuation of the assets of the Videocon Industries during the insolvency process as Anil Agarwal’s Twin Star Technologies, the successful bidder, also “arrived at almost the same value”.

Internet Explorer Channel Network
News Related


NCB being used to 'defame, harass' people: Maharashtra minister Jayant Patil

Aryan Khan (Image: PTI) Maharashtra minister and NCP state chief Jayant Patil on Thursday claimed that the Narcotics Control Bureau (NCB) was being used to “harass and defame” citizens. Speaking ... Read more »

Here's what Rakesh Jhunjhunwala asked Titan management in earnings call

NEW DELHI: Ace investor Rakesh Jhunjhunwala, who owns over Rs 10,400 crore worth of Titan Company shares, made multiple queries around Titan’s jewellery, watch and eyewear segments in an earnings ... Read more »

Victory of 'new India', healthcare workers & spirit of all Indians: G Kishan Reddy on 100-crore jabs milestone

Source: Twitter Union minister G Kishan Reddy on Thursday hailed the country’s milestone of 100 crore COVID vaccine doses administered by calling it a victory of Corona warriors and of “new ... Read more »

Victory of 'new India', healthcare workers & spirit of all Indians: Reddy on 100-cr jabs milestone

Union minister G Kishan Reddy on Thursday hailed the country’s milestone of 100 crore Covid vaccine doses administered by calling it a victory of Corona warriors and of “new India” ... Read more »

Mutual cooperation in COVID era will strengthen India-ASEAN ties in future: PM Modi

Prime Minister Narendra Modi (Illustration: Moneycontrol) ASEAN’s unity and centrality has always been an important priority for India, Prime Minister Narendra Modi said on Thursday. Addressing the India-ASEAN Summit virtually, ... Read more »

Australian shares fall, bond yield soars on rate hike fears

Australian shares fell on Thursday, dragged down by mining and energy stocks on weak commodity prices, while the central bank’s decision to skip buying a government bond prompted investors to ... Read more »

Japanese stocks fall on dim corporate outlook, chip shares limit losses

TOKYO: Japanese shares fell on Thursday, as disappointing forecasts from technology companies prompted a sell-off, though gains in heavyweight chip-related companies limited losses. The Nikkei share average closed 0.96% lower ... Read more »

European stocks struggle as Volkswagen offsets earnings cheer

European stocks struggled for direction on Thursday, one of the busiest days for earnings, as some leading automakers warned of production hit from chip shortages while a handful of companies ... Read more »

[Newsmaker] Korean steelmakers report stellar earnings on rising steel prices

Hyundai Steel’s plant in Dangjin, South Chungcheong Province (Hyundai Steel)Korean steelmakers witnessed the highest-ever profits in the third quarter this year, backed by strong sales due to surging steel prices. ... Read more »

(LEAD) HHIH Q3 net profit up 28.6 pct on equity gains in shipbuilding units

(ATTN: RECASTS throughout with details; CHANGES headline; ADDS photo) SEOUL, Oct. 28 (Yonhap) — Hyundai Heavy Industries Holdings Co. (HHIH) said Thursday that its third-quarter net income rose 28.6 percent ... Read more »

LX Hausys Q3 net income down 94.3 pct. to 3.1 bln won

SEOUL, Oct. 28 (Yonhap) — LX Hausys Ltd. on Thursday reported its third-quarter net profit of 3.1 billion won (US$2.6 million), down 94.3 percent from a year earlier. The company ... Read more »

Punjab National Bank shares tumble nearly 10% after Q2 earnings

New Delhi: Shares of Punjab National Bank (PNB) on Thursday declined nearly 10 per cent after the company reported a fall in income for the second quarter ended on September ... Read more »

HHIH Q3 net profit up 28.6% on equity gains in shipbuilding units

This file photo shows a 14,500-TEU container carrier built by Hyundai Heavy Industries Co. (Hyundai Heavy Industries Co.)Hyundai Heavy Industries Holdings Co. (HHIH) said Thursday that its third-quarter net income ... Read more »

LG Electronics Q3 net profit down 20.4% on Bolt EV recall costs

(Yonhap)LG Electronics Inc. said Thursday its net profit dropped 20.4 percent on-year in the third quarter due to costs incurred in a recall of General Motor’s Bolt electric vehicles. The ... Read more »

SK Innovation, Solid Power to co-develop, produce solid-state batteries

Dr. Lee Seong-jun, chief technology officer of SK Innovation (left), poses with Doug Campbell, chief executive officer of Solid Power, after signing a deal on joint development and production of ... Read more »

Shinsegae Group vice chairman buys $19.2 million Beverly Hills mansion: report

( Group heir and vice chairman Chung Yong-jin has reportedly purchased a mansion worth 22.5 billion won ($19.2 million) in Beverly Hills, California. According to online US real estate media ... Read more »

0.1 percent of companies account for 51.3% of output: data

99.9% of domestic enterprises were SMEs, employing 82.7% of the country’s total employed population as of 2019. (Ministry of SMEs and Startups)Big companies account for just 0.1 percent of all ... Read more »

PM Narendra Modi's popularity among urban Indians improved since his meeting with US Prez Joe Biden, finds survey

US President Joe Biden meets with Prime Minister Narendra Modi in the Oval Office at the White House in Washington on Sep 24. (Image: Reuters) Prime Minister Narendra Modi’s approval ... Read more »

Saean to unveil new electric sports car

Saean’s EXOD sports convertible under development     First-generation electric carmaker Saean has quickly grown into a global company, and plans to focus on strengthening its headquarters as well as research and ... Read more »

ITC shares @ Rs 285 or Rs 225? Here's what analysts said post its Q2 results

NEW DELHI: September quarter numbers could not give ITC stock a lift as a good show in its paperboards and hotel businesses was offset by a weakness in the cigarette ... Read more »

(2nd LD) S-Oil Q3 net soars elevenfold on strong petrochem sales

(ATTN: ADDS closing stock price at bottom) By Kim Seung-yeon SEOUL, Oct. 28 (Yonhap) — S-Oil Corp., South Korea’s No. 3 oil refiner, said Thursday its net income surged by ... Read more »

Eoflow to raise 133.1 bln won via stock offering

SEOUL, Oct. 28 (Yonhap) — Eoflow Co.on Thursday announced that it will sell stocks to raise 133.1 billion won(US$113.7 million). The proceeds from the stock sale will be used mainly ... Read more »

Korea plants green dreams in Mongolia

Arid, rocky desert stretching out across the horizon with no end in sight, with heavy sandstorms carving out dry steppe land from time to time.  This may be what you ... Read more »

Doosan's Moon Hong-sung promoted to CBO, spearhead all biz

Doosan Corp.’s Chief Business Officer Moon Hong-sung (Doosan Group)Doosan Group said Thursday it has promoted Doosan Corp. President Moon Hong-sung to chief business officer. The newly appointed CBO will be ... Read more »

BNK Financial Group Q3 net profit up 94.2 pct. to 286.2 bln won

SEOUL, Oct. 28 (Yonhap) — BNK Financial Group Inc. on Thursday reported its third-quarter net profit of 286.2 billion won (US$244.6 million), up 94.2 percent from a year earlier. The ... Read more »

Zinus Q3 net profit down 10 pct. to 17.7 bln won

SEOUL, Oct. 28 (Yonhap) — Zinus Inc. on Thursday reported its third-quarter net profit of 17.7 billion won (US$15.2 million), down 10 percent from a year earlier. The company said ... Read more »

Hyundai Glovis Q3 net income up 12.8 pct. to 183.1 bln won

SEOUL, Oct. 28 (Yonhap) — Hyundai Glovis Co. on Thursday reported its third-quarter net profit of 183.1 billion won (US$156.5 million), up 12.8 percent from a year earlier. The company ... Read more »

SC permits NTA to declare results of NEET, 2021 for admissions in UG medical courses

The Supreme Court on Thursday permitted the National Testing Agency to declare the National Eligibility Entrance Test (NEET) results for admission to undergraduate medical courses across the country. A bench ... Read more »

Strong Q2 numbers drive Sona BLW 15% higher

New Delhi: Shares of Sona BLW Precision Forgings soared as much as 15 per cent in Monday’s session following a strong show in the September 2021 quarter. The auto components ... Read more »

IndusInd Bank rallies 9% as Q2 PAT surges 73%

NEW DELHI: Shares of IndusInd Bank jumped as much as 8.7 per cent in Thursday’s session as the private sector lender reported a 73 per cent year-on-year (YoY) surge in ... Read more »

UAE's First Abu Dhabi Bank posts 54% surge in Q3 profit on higher non-interest income

First Abu Dhabi Bank (FAB) , the biggest lender in the United Arab Emirates, posted on Thursday a 54% rise in third-quarter net profit, fuelled by higher non-interest income as ... Read more »

DL E&c reports 206.2 bln won Q3 net profit.

SEOUL, Oct. 28 (Yonhap) — DL E&c Co. on Thursday reported its third-quarter net profit of 206.2 billion won (US$176.3 million). The company said in a regulatory filing that it ... Read more »

SC allows NTA to declare results of medical aspirants after paper mix-up fiasco

NEET: The NTA had sought an urgent hearing in the Supreme Court on its plea against the Bombay high court order. The Supreme Court on October 28 allowed the declaration ... Read more »

Lotte Fine Chemical Q3 net profit up 750.6 pct. to 205 bln won

SEOUL, Oct. 28 (Yonhap) — Lotte Fine Chemical Co. on Thursday reported its third-quarter net income of 205 billion won (US$175 million), up 750.6 percent from a year earlier. The ... Read more »

Bajaj Auto gains 2% on healthy Sept quarter earnings

NEW DELHI: Shares of Bajaj Auto climbed over 2 per cent in early trade on Thursday as the company reported a 71 per cent year-on-year (YoY) rise in consolidated net ... Read more »

Pegasus order: SC refers to Nineteen Eighty-Four, novel by George Orwell in ruling

The Supreme Court of India The Supreme Court on October 27 appointed an independent expert committee into the allegations of spying using Israeli spyware Pegasus. In a decision that opened ... Read more »

Poongsan Q3 net profit up 84 pct. to 61.4 bln won

SEOUL, Oct. 28 (Yonhap) — Poongsan Corp. on Thursday reported its third-quarter net profit of 61.4 billion won (US$52.5 million), up 84 percent from a year earlier. The company said ... Read more »

Axis Bank, JSPL among 21 stocks sending sell signals on MACD charts

NEW DELHI: With the market turning volatile ahead of the monthly F&O expiry, at least 27 stocks including Axis Bank and Grasim Industries were sending ‘sell’ signals on MACD or ... Read more »

(LEAD) Hyundai Mobis Q3 net jumps 37 pct on equity gains

(ATTN: RECASTS headline, lead; REWRITES throughout; ADDS photo) SEOUL, Oct. 28 (Yonhap) — Hyundai Mobis Co., South Korea’s biggest auto parts maker, said Thursday its third-quarter net profit jumped 37 ... Read more »
On you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic