9 September 2019: The National Company Law Tribunal has asked the State Bank of India to not go ahead with its plans to sell the overseas oil and gas assets of Videocon Industries Ltd. in its bid to recover some of their dues from the bankrupt group.
Ordering a status quo, the NCLT said if SBI is allowed to execute the sale as advertised, the Videocon Group may suffer an irreparable losses if the tribunal in future takes a view that the assets in question belong to or owned by the group.
These subsidiaries are special purpose vehicles specifically incorporated by Venugopal Dhoot for holding foreign oil and gas assets for and on behalf of the group, the tribunal said in its order dated Sept. 7.
Therefore, it said, the creditors of these SPVs have lodged their claims with the RP. However, on merits the matter is still subjudice, the tribunal added.
“SBI is hereby prohibited to go ahead with the advertisement and is directed to maintain the status quo till the decision is pronounced on merits,” the NCLT said.
The order came after SBI has advertised to sell the upstream oil and gas assets of Videocon in Brazil and Indonesia inviting expression of interests.
Videocon Industries had earlier requested NCLT to include Videocon Energy Brazil and Videocon Indonesia Nunukan Inc. in the ongoing corporate insolvency resolution process, after its lenders invited bids for these assets to recover part of their debt.
Videocon Group, along with its 15 operating companies, owes over Rs 90,000 crore to lenders and was among the 40 large defaulters identified by the Reserve Bank of India in 2016.