Adani, Jindal Power join race to buy Videocon’s consumer durable business

Industry:    

The Adani Group and Jindal Power have expressed their interest to acquire Videocon’s consumer durable business which was put on sale for the second time by the lenders.

The Adani group’s surprise entry into the race has raised hopes of the lenders who are now expecting an early resolution of Videocon’s Rs 64,000 crore of debt.

The second rounds of bids were ordered by the National Company Law Appellate Tribunal (NCLAT) which asked CoC to seek bids again as the bid by Vedanta sought 95 per cent haircut on Videocon Industries Ltd’s (VIL) total debt. Vedanta had offered Rs 3,000 crore against VIL’s massive debt.

A larget part of Vedanta offer consisted of non-convertible debentures to be issued to lenders. The upfront cash was Rs 200 crore leading to few lenders moving the NCLAT.

Reliance Industries has also entered a separate race to buy VIL’s oil and gas assets.

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