Videocon lenders to seek better offers before last call on liquidation

The lenders to consumer goods to oil firm, Videocon Industries, have decided to wait to get a better bid for the company before taking a final call on liquidation.

The committee of creditors (CoC), which met on Friday, said because of the ongoing pandemic very few bidders had shown interest in the firm. If the company is sent for liquidation, the lenders will end up taking a huge haircut. But, as the economy picks up, creditors are of the opinion that the bidders will come back to the table.

When Videocon was sent to the National Company Law Tribunal (NCLT) for debt resolution, the company had dues of Rs 59,451 crore. Of this, claims of Rs 57,443 crore were admitted as of November 2018.