In what could become the largest corporate bankruptcy case in the country, Venugopal Dhoot-promoted Videocon Group and its entities owes in excess of ₹85,000 crore to banks, its vendors and even its employees.
The company, which is going through the insolvency process, owes its financial creditors that are mostly public sector banks a total of ₹57,443 crore. It owes the maximum to SBI of around ₹11,175 crore, followed by IDBI Bank ₹9,561 crore.
Operational claims filed by Videocon Industries include payments of ₹2,151 crore to 704 vendors, which includes the likes of Samsung, NEC and others. A sum of ₹3 crore is under reconciliation, the filings showed.
Videocon Telecom, a subsidiary, owes as a part of financial claims a whopping ₹24,302 crore to banks and other financial institutions. Videocon Telecom owes the maximum to SBI to the tune of ₹4,408 crore, according to the disclosures made by the resolution professional. Central Bank of India is the second biggest claimant with ₹3,073.16 crore.
Further, Videocon owes its employees around ₹2.1 crore, through salaries and other emoluments.
Interestingly, Videocon Industries owes ₹1,786 crore to Videocon Telecom, its subsidiary. Additionally, claims received from another 73 employees are under review.
This data was uploaded by the company’s Resolution Professional (RP) on the company’s website for varying periods ranging from November 2018 to January 2019.
This development marks the largest corporate bankruptcy in India, after the introduction of Insolvency & Bankruptcy Code (IBC), which industry watchers feel would rattle both the banks and the corporate sector.
Videocon was sent to the National Company Law Tribunal (NCLT) in 2018 by SBI after the Dhoots defaulted on their loans.
The group’s promoters — Venugopal, Pradipkumar and Rajkumar Dhoot — have filed separate claims of ₹57,823.24 crore for personal guarantees they provided to VIL for various facilities availed, which is under evaluation, the filings showed.
Source : Business Line, April 6, 2019