Mumbai: In its order approving the resolution plan submitted by Vedanta for the Videocon Group, the National Company Law Tribunal (NCLT) has raised doubts over maintenance of confidentiality during the process. NCLT has highlighted how Vedanta’s bid was close to the liquidation value, which is a secret. Pointing out that the successful applicant was paying “almost nothing” and the creditors were taking a haircut of 95.9%, the tribunal has called upon the Insolvency and Bankruptcy Board of India (IBBI) to review bankruptcy regulations.
Under the resolution plan, out of the total claim amount of Rs 71,433 crore of creditors, claims admitted are for Rs 64,838 crore and the plan that was approved was for an amount of only Rs 2,962 crore, which is just 4.15% recovery and the total haircut to all the creditors is 95.85%.
