Resolution professional of debt-laden firm Videocon Telecommunications on Tuesday invited bids from prospective buyers for its assets as part of corporate insolvency resolution process.
The corporate insolvency resolution process (CIRP) of Videocon Telecommunications (VTL) was commenced under the Insolvency and Bankruptcy Code (IBC) following an order by the NCLT Mumbai bench on June 11, 2018.
"Pursuant to the provisions of the IBC and the insolvency and bankruptcy board of India...prospective resolution applicants are invited to submit resolution plan for VTL," the notice by resolution professional appointed by committee of creditors said.
In the beginning of this year, the country's largest lender State Bank of India (SBI) had filed separate insolvency proceedings against Videocon Industries and Videocon Telecommunications.
The company is running business of national and international long distance licences, and e-KYC licence.
A consortium of 31 lenders, including State Bank of India, have claimed that VTL has debt exposure of around Rs 20,551 crore. However, National Company Law Tribunal admitted claims of 19 lenders amounting to around Rs 18,406 crore.
SBI had maximum exposure to the debt with claim of Rs 4,605 crore, followed by Central Bank of India Rs 3,073 crore, Bank of Baroda Rs 1,875 crore, Corporation Bank Rs 1,710 crore, Canara Bank Rs 1,401 crore, ICICI Bank Rs 1,349 crore and Punjab National Bank Rs 1,027 crore.
The other banks and financial institutions with high debt exposure to VTL include Union Bank of India Rs 971 crore, Dena bank Rs 799 crore, IFCI Rs 479 crore, LIC Rs 480 crore, Syndicate Bank 786 crore, Union Bank of India Rs 371 crore, Indian Overseas bank Rs 127 crore, Uco Bank Rs 80 crore, Vijaya Bank Rs 86 crore, among others.
Entities with consolidated net worth of Rs 200 crore at group level for immediately preceding completed financial year and turnover of at least Rs 100 crore at a group level during any one of the three immediate preceding financial years can bid for the company, the notice said.
Vendors and operation partners of VTL have made claims worth Rs 1,152 crore, but submission of around Rs 29.72 crore have been admitted by the NCLT. Among vendors, NEC has claimed Rs 11.6 crore, Tata Teleservices 4.9 crore (admitted Rs 2.9 core) Reliance Jio Infocomm Rs 36.6 lakh and Vodafone Mobile Services 9.1 crore.
IBM India has made claim of Rs 135 crore but it is subject to various disputes before various authorities.
The interest by interested entities need to be submitted by October 5, 2018.
Disclosure: RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.