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Videocon Insolvency: Creditors to take 96% haircut on dues, NCLT says bidder 'paying almost nothing'

The NCLT observed that many of the operational creditors are also MSMEs and may have to face 'inevitable' insolvency proceedings in the near future

June 16, 2021 / 10:08 AM IST
The bench also observed that the resolution plan gives 99.28 percent to the operational creditors, which it sarcastically hinted to be as a

The bench also observed that the resolution plan gives 99.28 percent to the operational creditors, which it sarcastically hinted to be as a "Hair cut or Tonsure, Total Shave" (Representative Image)

The National Company Law Tribunal’s Mumbai bench has approved Anil Agarwal-led Twin Star Technologies' Rs 2,962.02 crore resolution bid for debt-ridden Videocon Industries.

Observing that the bidder is "paying almost nothing" for Videocon, the NCLT said that creditors will be taking nearly 96 percent haircut on their loans under the insolvency resolution process.

Videocon Industries and its 12 group companies had a total admitted claims of Rs 64,838.63 crore.

The bench also observed that the resolution plan gives 99.28 percent to the operational creditors, which it sarcastically hinted to be as a "Hair cut or Tonsure, Total Shave".