Twin Star Technologies had earlier emerged as the winning bidder for 13 Videocon Group companies
Videocon Group’s lenders had approached the Insolvency Appellate Tribunal on 6 October NCLAT will allow them to reconsider Twin Star Technologies. Bid for the debt-ridden group.
Twin Star Technologies had earlier emerged as the winning bidder for 13 Videocon Group companies.
Solicitor General of India Tushar Mehta, representing the Committee of Creditors (CoC) of Videocon Industries, requested during the proceedings in the NCLAT “to restore the former position, so that we (lenders) may be placed in that position”. Which we were on December 11, 2020.” On 11 December, the voting process of the CoC was completed and the resolution plan of Twin Star was approved.
He further said that the lenders have the right to reconsider their decision.
“I can’t predict right now whether it will be a different decision or a single decision,” he said, adding the CoC has the power to “undo it, change it and modify it and send it again.” Mr. Mehta said that the CoC is still functioning and the ‘Functus Officio’ has not been created.
“We can lose it only on one condition that the CoC, after passing the resolution, becomes the factus officio… then we cannot do anything about it,” he said.
Functus officio is a Latin proverb meaning that the jurisdiction of the designated authority ceases once it has completed the functions for which it was appointed.
Meanwhile, senior advocate Gopal Jain, representing the successful resolution applicant Twin Star Technologies, submitted that the lenders cannot withdraw the bids.
“There was no CoC meeting after the plan was approved. The four-page application rests on the observations of the Adjudicating Authority (NCLT) made in a different context,” Jain said.
However, the appellate tribunal adjourned the hearing due to paucity of time and listed the matter for October 28 and 29, when Twin Star would conclude its arguments.
Last month, SBI, the major lender to Videocon Industries, approached NCLAT seeking fresh bids.
Billionaire Anil Agarwal’s Twin Star Technologies had made an offer of Rs 2,962 crore for Videocon Industries, which was 4.15 per cent of the lender’s accepted claims of Rs 64,838.63 crore.
Earlier on June 9, the Mumbai bench of the National Company Law Tribunal (NCLT) had approved the Rs 2,962-crore takeover bid of Twin Star Technologies for 13 debt-ridden group companies.
However, on July 19, the NCLT order was stayed by the appellate tribunal on the petitions filed by two disgruntled creditors- Bank of Maharashtra and IFCI Ltd.
Later, the lenders of Videocon Industries had also approached the Insolvency Appellate Tribunal for fresh bidding for 13 companies.
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