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    Defer insolvency action against Videocon arm: SBI to RBI

    Synopsis

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

    Lenders seek more time for insolvency action against Videocon oil arm: Sources to ET Now

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    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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    4 Comments on this Story

    mohit anand750 days ago
    Sridevi had stacked black money in swiss accounts and in return they are erecting her statue.
    RAJESH GHOSH755 days ago
    BPCL can buy out the Rs 20000 cr loan of videocon. RBI should not wait as speculation on oil fields that also with petrobas in brazil shall not be prudent. Settle the loan now and save the banks.
    Egg Head755 days ago
    Today it''s SBI-led cosortium, tomorrow another one & each consortium with Rs 20000 Crores will ask for 2 year extension & RBI will become a laughing stock-should it acquiesce or buckle under pressure to SBI consortium demand.
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