By selling a foreign property held as a security by the bankrupt conglomerate, IDBI Bank has recovered over Rs. 250 crore of its outstanding loans to Videocon Group.
According to three people familiar with the recovery, the property — a warehouse in Poland held by a minor step-down company of the group — was sold earlier this fiscal year. They alleged it was maintained as security for a loan to a Videocon Group multi-level step-down company with an exclusive charge of the bank.
“It was sold to a local buyer after a lengthy process in which the bank found a willing local buyer. “It's now done,” a source close to the negotiations stated. Another person stated, "The sole charge of the property with the bank aided in the sale and accelerated the recovery."
After an appeal by dissenting creditors upset with inadequate realisations, the National Company Law Appellate Tribunal (NCLAT) has delayed Vedanta's winning offer for Videocon under the Insolvency and Bankruptcy Code. Twin Star Technologies, a Vedanta subsidiary, obtained 94 percent of creditors' votes for its offer of just over Rs. 3,000 crore, a haircut of more than 95 percent on the admitted claims of Rs. 61,770 crore.
An NCLT bench earlier this month granted the Ministry of Corporate Affairs' request to attach the properties of Videocon's promoters and senior management personnel in order to boost recovery.
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