IDBI Bank Seeks Buyers For Videocon Arm’s Assets To Recover Rs 1060 Crore

IDBI Bank on Thursday sought bids for land assets mortgaged by Videocon Industries and owned by its subsidiary Prosperous Energy to recover more than Rs 1,060 crore owed to it by the parent entity. This is the bank’s second attempt in over six months to sell seven plots of land in Rewa, Madhya Pradesh, under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). The aggregate area of the land parcels is 545 hectare and the reserve price has been set at Rs 45 crore.

The last date for putting in bids is February 10. The e-auction of the properties on sale will be conducted on February 11.

The property is proposed to be sold on “as is where is basis”, “as is what is basis”, “whatever there is basis” and “no recourse basis”. All statutory liabilities/taxes/maintenance fee/electricity/water charges etc., outstanding as on date and yet to fall due would be ascertained by the bidder(s) and would be borne by the successful bidder. Bank does not take any responsibility to provide information on the same,” IDBI said in a public notice.

Fifteen entities from the Videocon group are currently undergoing insolvency proceedings on a consolidated basis. In September, the National Company Law Tribunal acted on a plea by lenders to Videocon Industries and allowed them to replace then resolution professional (RP) of the company Mahendra Khandelwal with Abhijit Guhathakurta.

As on November 12, 2018, then RP for Videocon Industries had received claims worth Rs 59,452 crore from financial creditors, of which claims worth Rs 57,444 crore were admitted. IDBI Bank had put in claims worth Rs 9,562 crore, of which claims worth Rs 9,561 crore were admitted.―Financial Express

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