Lenders to consider Videocon promoters' application for debt resolution

If the lenders agree to the proposal made by VIL's promoters, then it will be one of the first big ticket debt resolution by the lenders via Section 12A of the IBC

Topics
Videocon Industries | debt resolution | NCLT

Dev Chatterjee  |  Mumbai 

In an important test of insolvency laws, the lenders of Videocon Industries have agreed to consider the application from the promoters of the company for debt resolution under the Section 12A of the IBC Act. The Section 12A of the IBC gives the defaulter another chance to repay their dues and retain control over the firm even after the case is admitted to the NCLT (National Company Law Tribunal) for debt resolution.

This is subject to 90 per cent of the lenders’ agreeing to the proposal. If the lenders agree to the proposal made by VIL’s promoters, it will be one of the ...

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, October 04 2020. 13:45 IST
RECOMMENDED FOR YOU