InvestorQ : Is it true that Videocon is planning to make a bid for its own company?
vidhya Laxmi made post

Is it true that Videocon is planning to make a bid for its own company?

Answer
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sarah Leo answered.
3 weeks ago


With few takers for the Videocon assets and the NCLT quiescent till end of this year, lenders are likely to examine a proposal by the Videocon promoters to repay about Rs.30,000 crore and taking back control of the company. This could also become a template for the future.

Most of the offers received for the company have been extremely low and just a fraction of the total debt of Rs.30,000 crore. Banks now have the choice to place the company under liquidation or sell it to the Dhoot family. Liquidation is likely to be a bad choice.

Earlier, a similar proposal had been struck down by the RBI but now post-COVID the situation is very different. Normally, this would be the last option in any NCLT process and that could be the best way out in this case.