ONGC agrees to join Videocon arm resolution on lenders’ call

To avoid a fiasco similar to Videocon Industries, where the bankruptcy court frowned at the banks for accepting a bid closer to the liquidation value, lenders to its affiliate VOVL Ltd have approached the top management of ONGC NSE 1.92 %, requesting them to participate in the resolution process to widen participation for the oil & gas exploration company, said people with knowledge of the matter.

The State Bank of India-led consortium has subsequently directed the resolution professional of VOVL, earlier known as Videocon Oil Ventures Ltd, to restart the process after ONGC agreed to participate but sought more time for due diligence, one of the persons quoted above said.