Videocon Industries placed under bankruptcy, board suspended

Videocon Industries, one of the biggest local-grown consumer durables companies in India, confirmed that it had been placed under bankruptcy by the National Company Law Tribunal, in a petition by SBI.

With this, the company’s board of directors have lost their power to control the affairs of the company, and its power has been transferred to an interim resolution professional or IRP.

Financial professional Anuj Jain has been appointed as the interim professional.

The proceedings took place in a case filed by the State Bank of India, which has a total exposure of around Rs 4,000 cr.

The bank filed the case earlier this year, alleging that the company has dues of around Rs 500 cr as of Dec 27 last year.

In its petition, SBI also said that the properties mortgaged with it as part of various loan agreements is Rs 5,283 cr.

Separately, group chairman Venugopal Dhoot has been reported as saying that he expects the lenders to withdraw the petition after agreeing to a repayment plan.