InvestorQ : How do you see the impact of the deal between Videocon and Vedanta?
indhumathi Sayani made post

How do you see the impact of the deal between Videocon and Vedanta?

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4 months ago
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Lenders or the COC as they are known, have given their consent to sell the assets of Videocon Group to a group company of Vedanta. However, against the outstanding debt of Rs.46,000 crore, the assets will be sold to Vedanta at just Rs.3000 crore, entailing a huge haircut for all these lenders.

Lenders really don’t have much of a choice because the net liquidation value of Videocon is estimated at Rs.2600 crore and Vedanta is at least offering a premium of Rs.400 crore. The Videocon promoter, Dhoot, has proposed paying Rs.30,000 crore to take full control of the company, but the NCLT and the COC don’t appear to be too keen. However, Dhoot has agreed to pay the money by 2035, which is not acceptable to the bankers.

Videocon was one of the pioneers in India but got into areas like oil, gas, telecom, retail and DTH and ended up with a pile of debt.

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