NCLT approves Vedanta Group’s resolution plan for Videocon

The dedicated bankruptcy court on Tuesday has approved the Vedanta Group’s subsidiary Twin Star Technologies Ltd’s resolution plan for Videocon Group. This is the first consolidated group resolution since the inception of the Insolvency & Bankruptcy Code (IBC).

Vedanta’s offer of a little over Rs 3,000 crore for 13 companies belonging to the Videocon Group was far below the expectations of lenders, however, slightly above the liquidation value.

“The resolution plan is approved, subject to the payment to the dissenting financial creditors should be paid on priority basis as per the laws,” said the Mumbai bench of the National Company Law Tribunal (NCLT) in an oral order. “The lenders should also consider the payment of the salaries to its employees.”