Videocon’s insolvency case has initiated and there is a high chance that the creditors might lose 90,000/- Crore

6th April 2019, New Delhi: Videocon’s insolvency can lead to creditors losing more than 90,000 Crore. This debt is owed collectively to a group of lenders that are led by the statement of India. This marks the biggest case of insolvency since the introduction of the IBC code.

The Videocon group, promoted by Venugopal Dhoot owes more than INR 90,000 Crore to various private and public sector banks. According to Indian Banking history report, it marks the biggest case of Insolvency since the introduction of Insolvency and Bankruptcy Code.

The two main group companies of Videocon: Videocon Industries (VIL) and Videocon Telecommunication (VTL) owes lenders that are led by SBI (State Bank of India), INR 59,451.87 Crore and INR 26,673.81 Crore respectively. When combined, this adds up to INR 86,125.68 Crore.

Combined, the number of lenders that the Videocon owes to is 88.

In addition to banks, the 731 operational creditors have made claims worth INR 3,111.80 to VIl and INR 1,267 Crore to VTL.

Combining the entire debts, there is a gigantic sum of more than 90,000 Crore rupees.

AS already stated, since the introduction of IBC, this is the biggest case of insolvency and bankruptcy in India. Back in 2018, Videocon was taken to the NCLT due to insolvency. The latest update coming out from Times of India suggests that the board of directors have been dissolved and insolvency professional has taken the reins of the business interest of the company.

It is an interesting point to note that the Crime Bureau of investigation (CBI) has charged the director of ICICI and Venugopal Dhoot, in a loan scam, cheating and criminal conspiracy.

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