Videocon to Now be Part of the Vedanta Group

India’s bankruptcy court has allowed Twin Star Technologies, a part of Anil Agarwal’s Vedanta Group, to takeover Videocon Industries Ltd, a consumer durables company manufacturing air-conditioners to washing machines.

Twin Star will be paying about 30 billion rupees to Videocon’s lenders. Billionaire Anil Agarwal’s company will put up 5 billion rupees within 90 days and the rest as non-convertible debentures over a period of time.

In December, lenders had sought the bankruptcy court’s approval for the resolution plan submitted by Twin Star. The court recently approved the plan in a verdict.

Videocon was among the first 12 companies pushed into bankruptcy after directions from the Reserve Bank of India in 2017. The conglomerate’s protracted debt resolution underscores the challenges facing Indian lenders to recover their money amid a severe pandemic that threatens to add to the bad loans.

According to bankruptcy case-related disclosures on the company’s website, Videocon’s debt stood at over 635 billion rupees in 2019. Out of this, 574 billion rupees were owed to over three dozen banks and other financial creditors.