The shares of Videocon Industries fell to an all-time low of Rs 8.62, declining 4.96% on the BSE after the firm has been admitted by the National Company Law Tribunal under Insolvency and Bankruptcy Code (IBC). The shares have been locked in the lower circuit of 5% in Thursday's trade.
In all the lenders of the consumer goods company have an exposure of more than Rs. 20,000 crore and SBI's dues total to Rs. 3,900 crore. And as per sources, SBI-led lenders moved the NCLT's Mumbai bench and filed insolvency petition against the debt-laden electronics firm under the IBC.
Venugopal Dhoot, MD & CEO, Videocon Industries has been cited as saying in one of the agencies reports as saying, "We hope that the banks will recover nearly 70-80% of total loan of Rs 20,000 crore. We would like to have a situation where the entire process is seamless and within the stipulated time frame of 180 days".
Further, as per the report, KPMG's Anuj Jain has been appointed as the interim RP for the insolvency proceedings and the professional will be given a time of 180 days to turnaround the firm with an option of further extension up to 90 days. And in case the proceedings do not occur as per the resolution plan, the electronics company will have to be liquidated.
Videocon is in the Reserve Bank of India's second list of 28 defaulters under the IBC.
At 11:44am, the stock was quoting down by 4.52% at Rs. 8.66 on the BSE.