Bids invited for debt ridden Videocon under insolvency resolution process

Bids invited for debt ridden Videocon under insolvency resolution process
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New Delhi, Sep 25: Resolution professional of debt-ridden Videocon Industries on Tuesday invited bids from prospective buyers to take control of the firm, which has interest ranging from consumer electronics to oil and gas.
The corporate insolvency resolution process (CIRP) of Videocon Industries Ltd (VIL), which has debt of around Rs 20,000 crore, was commenced under the Insolvency and Bankruptcy Code (IBC) following an order by the NCLT Mumbai on June 6, 2018. In a public announcement, VIL Resolution Professional (RP) Anuj Jain said insolvency resolution process in respect of 11 group companies of VIL has also commenced and for other four other entities, order is expected to be passed by the NCLT shortly.
In the beginning of this year, the country’s largest lender State Bank of India (SBI) had filed separate insolvency proceedings against Videocon Industries and Videocon Telecommunications Ltd.
As per the criteria listed out by the RP, corporates, individuals or consortium of investors must have a minimum consolidated net worth of Rs 2,000 crore at group level in the immediately preceding financial years, and turnover of Rs 1,000 crore at group level during any one of the three immediately preceding financial years. For financial institutions, PE funds, asset reconstruction companies, NBFCs, other financial investors, including consortium of investors, minimum asset under management must be Rs 2,000 crore in the immediately preceding financial year or committed funds available for deployment/ investment of at least Rs 2,000 crore as on March 31, 2018.