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NCLAT sets aside NCLT nod of Twin Stars resolution plan for Videocon group

Mint  

The National Company Law Appellate Tribunal (NCLAT) has set aside an order passed by the Mumbai bench of the National Company Law Tribunal (NCLT) approving the bid by Anil Aggarwal-led Twin Star Technologies Ltd for the bankrupt Videocon Group. The resolution plan, which involved acquiring the company for INR 3,000 crore, has been remitted back to the committee of creditors (CoC). Provisions under Section 32 of the Insolvency and Bankruptcy Code (IBC) have not been complied with during the corporate insolvency resolution process, said the NCLAT. Thus, the CoC led by State Bank of India (SBI) may have to invite fresh expressions of interest for the cash-strapped company. The resolution value of INR 3,000 crore against a debt of INR 61,770 crore amounts to a 94% haircut and is only just above the liquidation value of INR 2,000 crore.