INDIA’S National Company Law Appellate Tribunal (NCLAT) has set aside an order of a bankruptcy court approving billionaire Anil Aggarwal-led Twin Star Technologies' bid for Videocon Group.
A two-member bench of the tribunal said the provisions of the Insolvency and Bankruptcy Code (IBC) have not been complied with during the corporate insolvency resolution process of Videocon Group.
"In view of the analysis of facts and law, we have come to the conclusion that the code (IBC) has not been complied with... Accordingly, the approval of the resolution of the plan by the CoC (committee of creditors) as well as the designated authority (bankruptcy court) is set aside”, the bench said.
"The matter is remitted back to CoC.”
The bankruptcy court had approved Twin Star Technologies’ offer for Videocon Group, making it the first consolidated group-level debt resolution under the Insolvency & Bankruptcy Code in India.
The Vedanta Group company's offer of a little more than Rs 30 billion (£300 million) for 13 companies of the Videocon Group was far below the expectations of lenders, but slightly above the liquidation value, according to an Economic Times report.
Videocon, promoted by Venugopal Dhoot had admitted claims of more than Rs 617.70 bn (£6.11 bn) to financial creditors.
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