NCLAT stays Twin Star’s Videocon bid

billionaire Anil Agarwal-owned Twin Star Technologies’ plan to buy Videocon Industries Ltd has received a setback after the National Company Law Appellate Tribunal (NCLAT) put on hold the potential transaction following appeals by dissenting creditors unhappy with the contours of the deal.

A two-judge bench headed by officiating NCLAT chairman Ashok Iqbal Singh Cheema stayed the implementation of the resolution plan approved by the National Company Law Tribunal and adjourned the matter till September 7; till then, Videocon will be managed by the resolution professional.

Bank of Maharashtra and IFCI had filed a plea opposing the existing plan, arguing that the value realized through the sale to Twin Star Technologies is less than the liquidation value, and also that a bulk of the payment will be made through non-convertible debentures.