New Delhi, Aug 1: Former promoter of the Videocon Group Venugopal Dhoot has moved the National Company Law Appellate Tribunal (NCLAT) against the bankruptcy court order approving the resolution plan of Twin Star Technologies Ltd for debt-laden Videocon Industries.
Dhoot has appealed to the NCLAT to direct the Committee of Creditors (CoC) to consider the resolution plan submitted by him under section 12A of the Insolvency and Bankruptcy Code (IBC) that entails “Zero Haircut.”
Moving the NCLAT, Dhoot has submitted that prior to admission into corporate insolvency resolution process (CIRP) and during the CIRP, the Appellant has always worked in the interest of stakeholders and is still willing to resolve the debt and provide better returns to the stakeholders.
He further said that a similar proposal was submitted by the 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 the 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.
The former Videocon Chief has stated in the petition that while RP is taking Rs 1.5 crore per month from CoC as their fees for keeping the companies in CIRP as going concern nothing was done to keep the group as going concerned. Further, this has resulted in eroding Brand Value.
In his petition, Dhoot has mentioned that NCLT Mumbai by order dated December 15, 2020, held that foreign oil and gas assets of Videocon Group held through its foreign subsidiaries, are in fact purchased by Videocon Industries Ltd (VIL) and are to be treated as assets of VIL. The Liquidation Value of these Oil assets is not less than Rs 15,000 crores.
“As such RP/CoC has no authority to sell Oil assets and Consumer durables separately. If RP has sold Oil and Consumer durables together, RP would have got a minimum of Rs 25,000 crores against a loan of Rs 49,000 crores. Thus recovery would have been around 50% and not 5% as seen today,” as per Mr. Dhoot.
Dhoot has said that the RP should have mentioned these facts in the Information memorandum (Tender Form) to all the bidders but he failed to do so, which is a violation of IBC. So Videocon requested in its appeal that this resolution plan be canceled and a fresh resolution plan be considered with Oil and Consumer Durable assets.
In the 12A proposal submitted to the banks, Dhoot has offered to pay the whole loan of Rs 30,000 crore to the bank and take back the company. This restructuring proposal was approved by CoC in October 2017. But the company went to NCLT so it was not possible. The same proposal Videocon has given to CoC was rejected. (UNI)