TaxTMI 
TaxTMI 
2018 (6) TMI 846
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....Mumbai Bench. 2. The 'Corporate Debtor' is part of the Videocon Group having business of manufacturing, assembling, marketing and distribution of Consumer Electronics and Home Appliances. It is informed that the Subsidiaries of the Group are also in the business of Oil and Gas. Videocon Group was founded in the year 1984 by Late Shri Nandlal Madhavrao Dhoot. Stating the background of the Group, it is informed that the Company had started business from Marathwada Region and presently expanded across India and in other countries as well. Earlier Videocon Group was in the business of manufacturing of Television but later on diversified the business in Telecom, Oil and Gas etc. The Group is a Listed Company on National Stock Exchange as well as Bombay Stock Exchange. The Promotors are holding about 62.37% shareholding. 3. It is informed that for the purpose of diversification of the business, the Videocon Group had availed several financial Facilities from various Banks. A 'Consortium' of Bankers have granted Loan facilities constituting several Banks wherein SBI is a Lead Bank. The Joint Lenders Forum (JLF) rendered several types of 'Financial Debt' facilities to the Petitioner.....
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.... guarantee facility of Rs. 2 crores (Rupees Two Crores Only) as specified in Schedule I to the Working Capital Facility Agreement (The above mentioned facilities granted to the Corporate Debtor by SBH are collectively referred to as the SBH Facilities" Total debt granted to the Corporate Debtor under the SBH Facilities: Rs. 383 Crores (Rupees Three Hundred and Eighty Three Crores Only) By SBM: Fund based facilities (1) Rupee term loan to the tune of Rs. 250 Crores (Rupees Two Hundred Fifty Crores Only) ("SBM RTL"), as set out in Schedule I to the RTL Agreement. (2) Further, a working capita! term loan to the limit of Rs. 92 Crores (Rupees Ninety Two Crores Only) (SBM Working Capital Facility") was made available to the Corporate Debtor comprising of fund based facility to the tune of Rs. 32.50 Crores (Rupees Thirty Two Crores and Fifty Lakhs Only) and non-fund based facilities being letter of credit facility of Rs. 57.50 crores (Rupees Fifty Seven Crores and Fifty Lakhs Only) and bank guarantee facility of Rs. 2 crores (Rupees Two Crores Only) as specified in Schedule I to the Working Capita! Facility Agreement (The above mentioned facilities granted to the Cor....
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....e Debtor, stated therein the Debt disbursed, Date of Disbursement under various facilities as under:- Details of Total Amount of Debt granted and Dates of Disbursements under Facilities S. No. Facility Disbursed amount (in Crores) O/s as on 27.12.2017 (in crores) Date of Disbursement Comments SBI Facilities 1 SBI RTL facility 2072.00 Principal: 1947.58 22.11.2012 1st disbursement was done on 22.11.2012 and remaining amount in multiple tranches Interest: 259.77 Total: 2207.35 2 SBI WCTL facility - Cash Credit-I 161.50 Principal: 315.04 31.07.1995 Facilities were renewed on 04.01.2017 Interest: 35.23 Total: 350.27 3 SBI WCTL facility - Cash Credit-II 1.00 Principal: 0.98 31.07.1995 Facilities were renewed on 04.01.2017 Interest: 0.10 Total: 1.08 4 SBI WCTL facility -LC Facility 287.50 239.58 31.07.1995 Facilities were renewed on 04.01.2017 5 SBI WCTL facility - BG Faci....
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....terest: 6.75 Total: 64.83 3 SBM WCTL facility - LC Facility 57.50 31.07.2005 Facilities were renewed on 31.12.2015 4 SBM WCTL facility - BG Facility 2.00 31.07.2005 Facilities were renewed on 31.12.2015 Total 342.00 330,84 SBP Facilities 1 SBP RTL Facility 16.09 Principal: 42.86 19.12.2012 2.45 Interest: 5.80 . 20.12.2012 27.31 Total: 48.66 20.12.2013 2 SBP WCTL facility - Cash Credit Facility 31.00 Principal: 57.07 24.11.2005 Facilities were renewed on 20.01.2016 Interest: 7.09 Total: 64.16 3 SBP WCTL facility - LC Facility 52.00 24.11.2005 Facilities were re....
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....claimed to be in 'Default' and the date of default is described as under:- " 2. AMOUNT CLAIMED TO BE IN DEFAUL T AND THE DA TE ON WHICH THE DEFAULT OCCURRED (A TTACH THE WORKINGS FOR COMPUTA TION OF AMOUNT AND DA YS OF DEFAULT IN TABULAR FORM) Amounts under default and dates of default under the SBI Facilities: (1) The amount in default under the SBI RTL facility as on December 27, 2017 is Rs. 298.63 crores (Rupees Two Hundred and Ninety Eight Crores and Sixty Three Lakhs Only), out of which the total principal amount defaulted as on December 27, 2017 is Rs. 38.85 Crores (Rupees Thirty Eight Crores and Eighty Five Only). The first date of default under this facility was May 01, 2016. (2) The amount in default under the SBI Working Capital Facility facility (sic) as on December 27, 2017 is Rs. 44.12 crores (Rupees Forty Four Crores and Twelve Lakhs Only), out of which the total principal amount defaulted as on December 27, 2017 is Rs. 8.79 crores (Rupees Eight Crores and Seventy Nine Lakhs Only). The first date of default under this facility was May 01, 2017. Amounts and dates of default under the SBH Facilities: (1) The amount in default under the SBH RTL fa....
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....ay 01, 2016. (2) The amount in default under the SBP Working Capita! Facility facility (sic) as on December 27, 20171s Rs. 7.16 Crores (Rupees Seven Crores and Sixteen Lakhs Only) out of which the total principal amount defaulted as on December 27, 2017 is Rs. 0.07 Crores (Rupees Seven Lakhs Only). The first date of default under this facility was May 01, 2017. Total amount in default as on December 27, 2017 under the SB! Facilities SB! Facilities, SBH facilities, SBM facilities, SBT facilities and SBBJ facilities, SBP Facilities collectively; Rs. 498.63 Crores (Rupees Four Hundred Ninety Eight Crores and Sixty Three Lakhs Only). 4.4 That vide Notice dated 05.03.2016 the Financial Creditor had demanded the Corporate Debtor to pay the amount due under 'RTL Agreement' and 'Working Capital Facility Agreement'. However, no payment was received. Again the Financial Creditor had issued Notices asking the Corporate Debtor to arrange Funds for servicing the amount. Some of the Notices are dated 27.01.2017, 02.05.2017, 25.07.2017 directing the Corporate Debtor to make the payment under 'RTL Agreement' and 'Debt' in respect of Working Capital Facility. It was communicated ....
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....ate Bank of India and Reserve Bank of India to appoint independent Rating Agency. The contention of the Company { VIL ) was that on one hand the negotiations were in the process with the JLF , but on the other hand the State Bank of India had filed this Petition for invocation of Insolvency Proceedings. As per the said Writ Petition a Meeting was held on 12.05.2016 among the Corporate Debtor and the members of JLF but thereafter no action was taken for the implementation. In the Writ Petition several dates are mentioned to demonstrate that the impugned Corporate Debtor had made efforts to consider the proposal of restructuring of the Debt which was agreeable to the Consortium of Banks, but while the proposal was pending, a Circular was issued to all Scheduled Commercial Banks and Financial Institutions in respect of "Scheme for Stressed Assets - Revisions" to consider the Resolution Plan within a specified period. Even on 14.12.2016 a Meeting was held with JLF to discuss a Plan of Resolution. Meanwhile, it was decided by the Government and Reserve Bank of India to initiate Insolvency Proceedings in respect of a defaulting Company. In the Writ Petition, therefore, the main Prayer wa....
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.... suffered huge losses in Telecom business on account of cancellation of Licence which resulted into non-payment of Bank Liabilities. 6.2 The Learned Counsel has further stated that on 18.09.2008 Videocon had executed a 50:50 Joint Venture with Brazil Petroleum Limited to have a business of Oil and Gas. The delay was caused in obtaining the sanction from the local Government, which resulted into heavy losses, 6.3 The Learned Counsel has also informed that VIL was in the business of manufacturing and supply of Cathode Ray Tube Televisions and being only manufacturer earning considerable profit margin. The business was across the world as there was a large demand of CPR-TV. However, on account of demonetization in India the Suppliers were unable to provide the raw-material. As a result, there was a sharp decline of the business, as a result VIL was constrained to close that business. Because of these reasons, the cash circulation was disturbed which was beyond the control of VIL. He has also pleaded that the Corporate Debtor and the Group have never been declared as "wilful defaulter" because they have always cooperated with the Bank Authorities. Learned Representative has state....
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....lfilled for initiation of Corporate Insolvency Resolution Process ( CIRP ) . The Financial Creditor has furnished several evidences to establish the existence of the "Financial Debt" and sufficient record to establish the occurrence of "Default". Rest of the conditions being satisfied, this Petition deserves "Admission". 10. The Financial Creditor has intimated the name of the IRP Mr. Anuj Jain having Registration No. IBBI/IPA-001/IP-P00344/2017-18/10645, Address: KPMG, 1st Floor, Lodha Excelus, Apollo Mills Compound, NM Joshi Marg, Mahalaxmi, Mumbai-400 Oil, Email: [email protected]. The proposed IRP has furnished the requisite Certificate in Form No.2 that no disciplinary Proceedings is pending. On due consideration, the proposal of appointment of the IRP is hereby confirmed. 11. Upon "Admission" of the Application it is hereby pronounced the declaration of "Moratorium" as mandated in Section 14 of The Code. The declaration of Insolvency Process and commencement of "Moratorium" shall be made by Public Announcement immediately as prescribed U/s. 13 read with Section 15 of The Code. The appointed IRP shall perform the duties as an Interim Resolution Professional as ....