Debt

Debt Financing

NCLT admits personal insolvency petition against Videocon's Venugopal Dhoot

Economic Times  

The Mumbai bench of the National Company Law Tribunal (NCLT) has admitted a personal insolvency petition against Videocon promoter Venugopal Dhoot just a day after the Ministry of Corporate Affairs (MCA) received permission to freeze his assets. Lenders to Videocon had filed the personal insolvency petition to attach Dhoot's assets a year ago and its admission now means recovery process will go on full steam. However, it is unclear how the admission of personal insolvency proceedings will impact the NCLT's order freezing Dhoot's assets on a plea by MCA. State Bank of India (SBI), the lead lender in the consortium of bank creditors, has also taken Venugopal's brothers and Videocon co promoters Rajkumar Dhoot and Pradipkumar Dhoot under the personal bankruptcy law. Banks led by SBI are seeking to recover a close to INR 18,000 crore by initiating guarantees given by the Dhoot brothers at different points in time to access loans from banks.