Debt

Debt Financing

Lenders face Rs.42,000-Cr haircut as NCLT clears Vedanta's bid for Videocon

Business Line  

Banks will take an INR 42,000 crore haircut after the Mumbai Bench of the National Company Law Tribunal (NCLT) approved a bid by Vedanta group firm Twin Star Technologies to acquire Videocon Industries Ltd for INR 2,900 crore. Claims worth INR 46,000 crore had been admitted under the insolvency process that began in December 2017. While the NCLT order ensures that the company's former promoter, Venugopal Dhoot's offer to take back control has been rejected finally, it also means that banks, led by SBI and IDBI Bank, will have to settle for a low recovery.