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