Why NCLT thinks Vedanta is getting Videocon for ‘almost nothing’ https://indianexpress.com/article/explained/vedanta-group-videocon-industries-resolution-plan-nclt-order-7363140/
the Mumbai bench of the NCLT has raised questions about Vedanta group company Twin Star Technologies’ Rs 2,962 crore bid for 13 Videocon group companies, noting that the applicant was paying “almost nothing”.
banks won’t get back Rs 68,471.73 crore that they claimed under the plan.
voluminous number of operational credit are also MSMEs and if they are paid only 0.72 per cent of their admitted claim amount, in the near future, many of these operational creditors may have to face insolvency proceedings which may be inevitable. NCLT requested both CoC and Twin Star to increase the pay-out amount to these operational creditors, especially MSMEs, as this is the first group consolidation resolution plan of 13 companies having a large number of MSMEs.
As per the CIRP Regulations, the liquidation value and fair market value is kept as confidential and informed to the lenders panel members only at the time of finalising the resolution plan... a doubt arises on the confidentiality clause being in real time use. The liquidation value of the corporate debtor is Rs 2,568.13 crore which is very close to the amount approved by the lenders. ..
According to rough estimates, banks have suffered a haircut of Rs 2.97 lakh crore in insolvency resolution plans of 12 big corporates. While the total loan amount involved is Rs 4.47 lakh crore, the settlement amount is Rs 1.62 lakh crore. Apart from Videocon, other major losses for lenders include ABG Shipyard (95 per cent or Rs 20,800 crore), Lanco Infra (88 per cent or Rs 41,700 crore) and Alok Industries (83 per cent or Rs 25,148 crore). However, banks were using Sarfaesi Act to seize the assets and recover loans from home loan customers and small units.
Post by OPS: if I tried taking this amount from a bank or a MSME, I would be on the most wanted list of a few Union and State law enforcement agencies!