The National Company Law Tribunal (NCLT) has ordered the inclusion of Videocon Industries’ overseas oil and gas business in the ongoing insolvency process being conducted in the country. Videocon was in the first list of the 12 largest accounts that the Reserve Bank of India referred for bankruptcy in late 2016. The diversified group owes collectively over Rs 1 lakh crore to lenders.
“…..there is cross creation of the security interest by all lenders in other business assets of Videocon Group treating it as a single economic entity,” NCLT has said.
“… we have concluded that foreign oil and gas assets of the group held through VOVL, VHHL, VEBL and VINI, are in fact, the assets and property of VIL…. Therefore, the assets held by them can be said to be ‘its’ assets, which is under the insolvency,” the order noted.
VIL’s overseas oil and gas companies are VOVL Ltd, Videocon Hydrocarbon Holdings Ltd (VHHL), Videocon Energy Brasil Ltd (VEBL), Videocon Indonesia Nunukan Inc (VINI).
The tribunal also directed the resolution professional (RP) to include the assets, liabilities, claims of the above mentioned overseas assets/companies in the information memorandum of Videocon Industries.
The two-member bench comprising Suchitra Kanuparthi and Chandra Bhan Singh allowed a moratorium on the foreign petroleum assets of the group which will restrain its lenders from selling the conglomerate’s overseas assets.
In addition, the order cited that since some time has passed in deciding the application, the time spent in deciding this application from August 22, 2019 until the date of the order, is added in the permitted timeline for the completion of the ongoing insolvency process.
Venugopal Dhoot had moved NCLT after State Bank of India invited bids in August 2019 for the group’s overseas assets, which were offered as collateral for loans to Videocon entities.