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Videocon's financial creditors to get 8% stake in merged entity

Mint  

The financial creditors of the debt-ridden Videocon Industries Ltd (VIL) will get 8% equity in the entity created by the merger of 11 group companies into the firm as per the resolution plan. The 11 group companies include Values Industries Ltd (VAIL), for which a combined insolvency resolution process was conducted. Equity shares of VIL, owned by Twin Star Technologies, having a face value of INR 10 per fully paid-up equity share capital, shall be issued to the financial creditors "in proportion to their respective portion of the converted debt". The shares shall be subject to a three-year lock-in period. Shareholders of two listed companies - VIL and VAIL - will receive "nil" money at the time of delisting as their liquidation values are not even sufficient to cover outstanding debt. The delisting process started on June 18, 2021. The 11 group companies to be merged into VIL after delisting are - Applicomp, CE India, Century Appliances, Electroworld Digital Solutions, Evans Fraser & Co, Millennium Appliances, PE Electronics, SKY Appliances, Techno Electronics, Techno Kart and VAIL.