SBI’s Insolvency Plea Against Videocon Adjourned By NCLT
State Bank of India’s insolvency plea against Videocon Industries Ltd. was adjourned till Feb. 21 by the National Company Law Tribunal.
India’s largest lender will propose the name of an interim insolvency professional in the next hearing, two people aware of the development told BloombergQuint requesting anonymity.
Videocon is among the second list of debt-laden companies that the Reserve Bank of India had identified for resolution under the Insolvency and Bankruptcy Code. The appliances maker, according to a Care Ratings report of June 2016, has a debt of Rs 43,000 core. More the half of it is dollar-denominated and the rest is from Indian lenders.
The RBI had given lenders six months till December resolve bad loans of companies on the second list, failing which insolvency proceedings will be initiated in the NCLT. Videocon filed a writ in the Bombay High Court challenging RBI’s six-month timeframe, the two people quoted above said.
A debt restructuring proposal has already been submitted for Videocon, the people quoted above said. The fate of SBI’s plea may be tied to the writ and the recast proposal, they said.