InvestorQ : Is it correct that the international business of Videocon is also being included as part of its bankruptcy proceedings at NCLT?
ishika Banerjee made post

Is it correct that the international business of Videocon is also being included as part of its bankruptcy proceedings at NCLT?

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Niti Shenoi answered.
1 year ago
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In fact, the NCLT has ordered that the Videocon oil business interests in Brazil as well as in Indonesia also be included in the insolvency proceedings being conducted in India. This is the first case where the NCLT has ordered the attachment of the international assets of a defaulting company for repayment of domestic bank dues. While there could be grey legal areas, this will surely set a precedent where foreign assets are included for making the good the loss to banks in India. These include oil blocks as well as the arms incorporated in the Virgin Islands and the Cayman Islands. SBI has appointed Deloitte as the advisor to counsel on the sale of Videocon’s foreign assets. NCLT argued that the loans taken by the foreign subsidiaries were guaranteed by Videocon and hence the property legitimately belonged to the group. This will surely set a precedent for future cases where foreign assets are involved.

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