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Avanti Investfin bids for Videocon

Avanti Investfin Private Limited has put in a bid for Videocon. Akhil Gupta, vice-chairman, Bharti Enterprises is a director in the company. His son Anubhav Gupta works in the company.

A group of 11 bidders have submitted binding offers for Videocon Industries that are undergoing insolvency proceedings at the national company law tribunal (NCLT).

The bids will be vetted for legal compliance before they are opened and the financial offers discussed.
Videocon’s promoters, the Dhoot family, have also submitted a competing offer for the company to the lenders consortium led by State Bank of India, according to these sources but the offer was described as a ‘non-starter’ by one of the bankers.

The promoters of Videocon Industries (VIL) had asked banks to defer any further action on the company’s bankruptcy proceedings till the Covid-19 pandemic blows over and it gets better valuation. Any hasty step will further dilute the valuation of the company with assets worth crores across India and overseas, VIL’s promoters told banks and the company’s debt resolution professional in a recent communication.

The promoters said the liquidation of Videocon Group companies would not only cause grave harm and prejudice to its stakeholders — whether they be financial creditors, operational creditors, or employees — but will also derail the entire insolvency process whose aim is value maximisation of assets.

Even before the decision to liquidate the group companies is taken, the committee of creditors must open all resolution plans received so far, said the promoters.

According to the earlier debt resolution proposal, banks will be able to recover up to Rs 27,500 crore of dues (as on November 2017) agreed to by the joint lenders’ forum (JLF) in November 2017 after the forensic auditors gave a clean chit to the company. But the Reserve Bank of India (RBI) decided to send the company to the National Company Law Tribunal (NCLT) for debt resolution within a month in December 2017.

According to an earlier plan by SBI Capital Markets (SBI Caps) for VIL, the company sought restructuring of its loans to be split into two: coupon-bearing debt of Rs 15,000 crore (55 per cent of principal) and non-coupon bearing of Rs 12,257 crore. Besides, Rs 4,032 crore of unpaid interest was also to be serviced as non-coupon bearing instrument.
CT Bureau

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