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Defer insolvency action against Videocon arm: SBI to RBI

SBI, along with others, is slated to consider additional $60 million loan to Videocon Oil.

ET Now|
Updated: Sep 03, 2018, 06.06 PM IST
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Lenders seek more time for insolvency action against Videocon oil arm: Sources to ET Now
Lenders seek more time for insolvency action against Videocon oil arm: Sources to ET Now
By Neha Bothra

An SBI-led consortium has sought permission from the Reserve Bank to postpone insolvency action against a subsidiary of Videocon Industries that owes the lenders over Rs 20,000 crore, sources told ETNow.

The entity in question is Videocon Oil Ventures. SBI, which wants the timeline for insolvency proceedings extended, has sought a 2-year dispensation from the RBI in connection with the loans to the Videocon arm.

RBI's new NPA guidelines mandate Videocon Oil Ventures to be referred to the National Company Law Tribunal (NCLT).

India's biggest public lender, along with others, is slated to consider additional $60 million loan to Videocon Oil, sources said.

The lenders expect value of Videocon's Brazilian oil field to soar to $1 billion, from $500 million by December 2019.

Both SBI and Videocon are yet to respond to an ETNow communication in this regard.

Videocon Oil Ventures is a joint venture between Videocon, BPCL and Petronas.

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