Lenders to Videocon Industries are unlikely to accept a proposal by the company’s promoters to repay about ₹30,000 crore for taking back control of the conglomerate.
According to banking sources, the offer by the Dhoot family entails repayments until 2035, which is not acceptable to many banks in Videocon’s Committee of Creditors (CoC). “There are four other offers for the Videocon assets under the insolvency process. The lenders are looking at these offers before taking a final view,” said a source close to the lenders.
The Dhoots had given a proposal to the banks under Section 12A of the Insolvency and Bankruptcy Code (IBC). The Section allows the withdrawal of the debt resolution proceedings under the National Company Law Tribunal (NCLT), but it needs the approval of majority of the lenders.
However, when contacted, Venugopal Dhoot, Chairman and Managing Director of Videocon, said the proposal to repay about ₹30,000 crore for taking back control of the conglomerate is being considered and “liked by the Committee of Creditors”.
“Since we offered no haircut, it’s a win-win for both. In fact, State Bank of India has tabled it as they like it,” Dhoot told BusinessLine.
Videocon, which is in multiple businesses ranging from oils to consumer durables, was controlled by the Dhoot family before lenders dragged it to the NCLT in 2017.