Lawstreet Journal

Relief To Videocon: NCLT Approves Founder’s Plea To Stop Lenders From Selling It's Overseas Assets

Lawstreet Journal 14 Feb 2020 3:32am

Image courtesy: Lawstreet Journal Judiciary Relief To Videocon: NCLT Approves Founder’s Plea To Stop Lenders From Selling It's Overseas Assets

The National Company Law Tribunal granted Venugopal Dhoot's request for a moratorium on the international petroleum assets of the debt-ridden Videocon Group and barred its lenders from selling the conglomerate's overseas assets. 

Dhoot, founder of the Videocon Group, also sought direction from the court to declare the properties of the overseas petroleum subsidiary of the group to be the property of Videocon Industries Ltd. 

Dhoot's request to merge the overseas oil and gas properties with the rest of the Videocon Group's assets was approved by a two-member tribunal consisting of the judicial member, Suchitra Kanuparthi, and technical member, Chandrabhan Singh.

The tribunal observed that Videocon Group entities would be forced into liquidation if the consolidation of the oil and gas assets isn’t allowed. “Foreign oil and gas assets cannot be treated separately only for benefit of Financial creditors,” it said in its order.

This is the outcome of the invitation by State Bank of India in August 2019 to tender for the Group's overseas assets, which were provided as collateral for loans to Videocon entities. The proposed sale was beyond the insolvency proceedings of Videocon Group entities and the lenders, including SBI, had objected to Dhoot's plea.

Section 38 of Insolvency and Bankruptcy Code,2016 (IBC) allows for consolidation of claims in the insolvency process. 

Mr. Venugopal has asked for a period to delay the payment of money so as to restrain the lenders from selling the conglomerate’s overseas assets. Moratorium has been defined in Section 14 of IBC. 

Dhoot opposed the sale on the ground that it belonged… Continue Reading...


Tagged: Videocon Tower   National Company Law Tribunal  
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