NCLAT junks Twin Star takeover of Videocon

New Delhi: A bankruptcy appeals court has scrapped billionaire Anil Agarwal-led Twin Star Technologies' winning bid to take over Videocon Industries Ltd on a plea by some creditors that the money offered imposed a steep Rs 62,000 crore haircut upon banks.

The National Company Law Appellate Tribunal (NCLAT) asked creditors to initiate the fresh sale of Videocon, a consumer durables company manufacturing products ranging from air-conditioners to washing machines, for recovery of their unpaid Rs 64,637.6 crore. While a majority of lenders had previously accepted Twin Star Technologies' Rs 2,962.02 crore offer, Bank of Maharashtra (BoM) and IFCI Ltd dissented, saying the amount offered was close to the liquidation value of the bankrupt firm and that they cannot be paid less than the liquidation value.

A two-member bench of Jarat Kumar Jain and Ashok Kumar Mishra said the approval to the takeover plan was "not in accordance with Section 31 of the Code" and set aside "the approval of Resolution Plan by the Committee of Creditors (CoC) as well as Adjudicating Authority (NCLT)".