SBI seeks advisor to optimise insolvency process of 15 Videocon companies

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26 Aug, 2025 12:21

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State Bank of India (SBI) said in a public notice that it wants to appoint an adviser to deal with separate resolution professionals (RPs) and prospective bidders for 15 Videocon group companies that have been referred to the National Company Law Tribunal (NCLT).

SBI Capital Markets will look for this 'common process adviser', who is expected to coordinate among RPs of Videocon companies and committee of creditors, Mint reported. The adviser will also be the only point of contact for prospective bidders on behalf of the banks.

This process may help the bank streamline the resolution process and secure the maximum value for all stakeholders of beleaguered Videocon Group Companies.

These include: Videocon Industries, Videocon Telecommunications, Electroworld Digital Solutions, Value Industries, Evans Fraser and Co, Millennium Appliances India, Sky Appliances, PE Electronics, Techno Electronics, Trend Electronics, Applicomp India, Techno Kart India, Century Applications and CE India.

The lenders consortium believes a comprehensive resolution of the Videocon Group Companies in a consolidated way will help them garner a higher value as opposed to an individual resolution of each company, the notice read.

Every company requires separate RPs as it is an individual legal identity. However, in cases like Videocon, where companies and their businesses are interconnected, this arrangement fetches more value for lenders, Sandeep Singhi, Managing Partner of dispute resolution firm Singhi & Co, told the paper.

Nishit Dhruva, with law firm MDP & Partners, told the paper that appointing separate RPs for all 15 companies will add to the red tape.

The promoters of the Aurangabad-based group approached the principle bench of NCLT New Delhi seeking a consolidated resolution process. Venugopal Dhoot, Chairman and Managing Director of Videocon Industries, had approached the tribunal earlier this month seeking intervention to stop RPs of 15 companies from sending expressions of interest.

The NCLT admitted SBI’s insolvency plea against Videocon Industries on June 6. Another NCLT bench had admitted a plea against Videocon Telecommunication. At the time of this admission, Anuj Jain was accepted as interim resolution professional for both entities.

Financial creditors have claimed Rs 57,164 crore from Videocon Industries, while operational creditors’ claims are worth Rs 29.72 crore. Videocon Telecommunications owes Rs 1,700 crore to 18 banks.