The National Company Law Appellate (NCLAT) on Monday ordered status quo to be maintained in the insolvency case of Videocon Industries Limited, thereby staying the approval granted to Vedanta group’s Twin Star Technologies by the Mumbai Bench of the National Company Law Tribunal (NCLT).
Hearing an appeal filed by Bank of Maharashtra, a two member Bench headed by officiating NCLAT chairperson Justice A I S Cheema said that since concerns had been raised that Twin Star Technologies, the successful resolution applicant would “bring in just Rs 262 crore and from that also first payment of Rs 200 crore will be brought in 25 months,” the status quo should be maintained.
The matter will be next heard on September 7 and till then the resolution professional would continue to manage the company as per the provisions of the Insolvency and Bankruptcy Code (IBC), the NCLAT said in its order.
Last month, the Mumbai bench of NCLT had, while approving the plan submitted by Twin Star Technologies, had raised questions about Vedanta group company’ Rs 2,962 crore bid for 13 Videocon group companies, noting that the applicant was paying “almost nothing”.
The resolution of the 13 companies of the Videocon group is the first group insolvency resolution completed under the Insolvency and Bankruptcy Code (IBC).