Twin Star Tech’s plea will be heard on February 24

Bombay : The Supreme Court has agreed to hear Twin Star Technologies Ltd’s case on February 24 against the January 5 order of the National Company Law Appellate Tribunal (NCLAT).

On January 5, the NCLAT ruling overturned an order issued by the Mumbai Bench of the National Company Law Tribunal (NCLT) approving the bid by Anil Agarwal, led by Twin Star Technologies, for the bankrupt Videocon Group.

The resolution plan (which provided for an acquisition at 3,000 crore) had been handed over to the Committee of Creditors (CoC).

The court, on February 14, sent an opinion in this regard to the creditors’ committee.

The NCLAT’s decision to refer the resolution plan to the lenders’ panel is the first such case since resolutions via IBC were notified in 2017. It comes amid growing outcry over the resolutions of the IBCs that perform with deep haircuts and transferred assets at ridiculous prices. .

The resolution value of 3,000 crore against the debt of 61,771 crore would have resulted in a 94% haircut for lenders. The resolution plan was slightly higher than the net asset value of 2,000 crores.

On June 8, the Mumbai bench of NCLT approved Twin Star Technologies’ resolution plan. Videocon’s lenders had approved the resolution plan in December 2020.

Videocon Group owes almost 61,770 crores to financial creditors of the company, according to the company’s website.

Of this amount, India’s largest state lending bank holds claims of 11,152 crores, while IDBI Bank has claims worth 9,922 crore.

The NCLAT order follows a plea from dissenting financial creditors – Bank of Maharashtra, SIDBI and IFCI. The three creditors represented 3% of the CoC and requested a supplement 9 crores in the resolution plan, said a person with direct knowledge of the matter.

Videocon Industries, owned by the Dhoot family, was taken to court after failing to repay 230 crores at SBI in 2017. However, the issue has languished for a long time due to various factors.

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