Under Debt Of Rs 22,100 Cr From Indian Banks, Videocon Chairman Denies Reports Of Fleeing Country

The Logical Indian Crew

March 9th, 2018 / 5:55 PM

Courtesy: Money Life | Image Credit: Livemint

Videocon Industries Limited (VIL) which is reeling under Rs 22,100 crore debt with a consortium of 17 Indian Banks is seeking an extension on the repayment period by five years. VIL is reeling under a debt of Rs 43,100 crore, Rs 21,000 crore debt of which is with foreign banks. Videocon Groups chairman, Venugopal Dhoot has trashed claims of him fleeing the country.


VIL owes Rs 22,100 cr to consortium of 17 Indian banks

Trouble for VIL began in 2012 after the Supreme Court cancelled 122 licenses of 2G spectrum in 2012 alleging scam. The attempt of VIL at diversification into sectors like real estate also failed. Dhoot said,”The cancellation of the 2G spectrum in 2012 by the court led to the company falling into bad times. Diversification into real estate was also not a good decision.

VIL has not asked for any interest waiver on the Rs 22,000 debt but has requested for extension of the repayment period. Dhoot told DNA,”We are not asking for any interest waivers. We are only requesting banks to delay the repayment of the dues by five years. The stock price will bounce back after the initial panic as the company is backed by strong underlying assets.

A senior banker confirmed that VIL was seeking for an extension in the loan repayment period. “The company has asked for a relaxation in the repayment period until the time assets are sold and cash flows are comfortable. The company claims that the fall in oil prices are hurting its cash flows.

Due to doubts over whether the company would be able to repay the loan, VIL is said to have shed 50% stock. The stocks started dropping after Dena Bank declared the loans to VIL as non-performing assets(NPA).

Many assets of VIL have been offloaded. The company’s headquarter in Mumbai has been sold for Rs 300 crore, only one floor of the building is retained. In March 2017, the company sold spectrum for Rs 4,428 crore to Bharti Airtel. Earlier, in 2013, the group had sold its Mozambique gas field for $2.5 billion. Dhoot also expects Rs 2000 crore on the sale of Kenstar Brand.


Chairman of VIL rubbishes reports of fleeing country

Dhoot on March 8, rubbished claims of him fleeing the country. He told ET, ”I am very much in India and have no intention to ever going out of the country….in fact, I am most comfortable here and have not stepped out of India since the last five years.”


Contributors

Written by : Shraddha Goled

Edited by : Bharat Nayak

Share your thoughts..

Related Stories

How Modi Government Drove India’s Most Profitable Company Under A Mountain Of Debt

Under Debt Of Rs 22,100 Cr From Indian Banks, Videocon Chairman Denies Reports Of Fleeing Country

9,339 Willful Defaulters Owe Indian Banks Rs 111,738 crore, Public Sector Banks Worst Hit

Nirav Modi

PNB Scam: Reports Show Rs 3000 Cr Additional Fraud From 17 Other Banks; SBI Reports Exposure Of Rs 1,360 Cr

MP: Health Minister Denies Reports Of State-Run Hospitals Providing Astrologers To Diagnose Patients

Rural Banks’ Closure Brings Agri Economy To A Halt; Urban Poor, Co-Op Banks Feel The Pinch

Latest on The Logical Indian

News

Statue Of Unity: Tribals Lock Engineer Office In Protest For Jobs And Rehabilitation Facilities

News

Udupi: Krishna Temple Bans ‘Ede Snana’, The Practice Of Rolling Over Food Offered To Deity

Awareness

“They Have Turned Village Into Coal Dumping Yard” Jharkhand Villagers Accuse NTPC Of Forcibly Acquiring Land

News

After Six Years Of Imprisonment In Pakistan, Hamid Ansari Returns To India

Awareness

Johnson & Johnson Knew About Presence Of Cancerous Asbestos In Their Baby Powder

Awareness

Cabinet Approves Amendment To Make Aadhaar Optional For Banking, Phone Connections

x

Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.