New Delhi: Bankruptcy court NCLT on Tuesday allowed billionaire Anil Agarwal's Twin Star Technologies to take over Videocon Industries Ltd for about Rs 3,000 crore.
Twin Star, a part of Vedanta Group, will pay around Rs 500 crore within 90 days as upfront payment and the rest as non-convertible debentures over a period of time.
A two-member Mumbai bench of the NCLT comprising members - H P Chaturvedi and Ravikumar Duraisamy - approved the resolution plan by Twin-Star Technologies.
Confirming the development, Partner at Shardul Amarchand Mangaldas Anoop Rawat told PTI: "The NCLT has today approved the resolution plan filed by Twin Star Technologies. Rawat was assisting the resolution professional of Videocon Industries into the matter.
The order was orally pronounced by the National Company Law Tribunal (NCLT) into courtroom and a detailed copy of the judgement is awaited.
Videocon Industries also confirmed the development through a regulatory filing.
NCLT has pronounced the order on June 8, 2021 (Tuesday) approving the Resolution Plan for the Consolidated Corporate Debtors including the Company, under Section 31 of the Code, it said.
"The Approval Order has not yet been published and is currently awaited.
Videocon Industries further informed "in terms of the Resolution Plan, the equity shares of the Company are proposed to be delisted".
Accordingly, an appropriate disclosure would be made upon receipt of the copy of the order by the NCLT approving the Resolution Plan, it added.
This approval will also now consolidate Vedanta's hold in Ravva oil field. Vedanta's interest in Videocon is principally driven by the latter's 25 per cent stake in the Ravva oil field in the KG Basin.