Daijiworld Media Network

Mumbai, Sep 26: After defaulting on debt worth Rs 20,000 crore, Videocon Industries Ltd (VIL) which is going into bankruptcy has invited bids from prospective buyers to take control of the firm.

The company is undergoing insolvency process under the Insolvency and Bankruptcy Case (IBC). Venugopal Dhoot’s Videocon has diversified businesses, ranging from consumer durables to oil and gas. The company was among the 28 companies identified by the Reserve Bank of India (RBI) on its second list for huge defaults.

The corporate insolvency resolution process (CIRP) of the company was commenced under the IBC following an order by the Mumbai bench of Company Law Tribunal (NCLT) on June 6.

VIL Resolution Professional (RP) Anuj Jain said insolvency resolution process in respect of 11 group companies of VIL has commenced and for other entities, order is expected to be passed by the NCLT shortly.

Meanwhile, Videocon in June claimed losses due to government policies especially demonetization, both in India and abroad.

While demonetisation affected its supply for making cathode ray tube televisions, Supreme Court decision to cancel telecom licenses impacted its telecom business. Red tape in Brazil affected its oil-and-gas business, Videocon claimed.