State Bank of India, 18.05%: Voted for.
IDBI Bank, 16.06%: Voted for.
Union Bank of India + Corporation Bank + Andhra Bank, 9.07%: Voted for.
These lines come from a judgment in the National Company Law Tribunal, Mumbai Bench, under India’s Insolvency and Bankruptcy Code, and they refer to the resolution of a failed company called Videocon Industries.
The list goes on through 35 creditors; a few dissent (Bank of Maharashtra, IFCI, a couple more) and most of the tinier creditors abstain.
But, by and large, it’s a resounding 'yes': the top 14 creditors, with more than 95% of the voting share between them, vote in favour.
What have they agreed to? A haircut of more than 95%.
The buyer of Videocon and a clutch of merged businesses within it is Anil Agarwal’s Twin Star Technologies, linked to the Vedanta Group, and he will be paying Rs29.62 billion ($400 million), compared with admitted claims by the creditors of Rs648.38 billion.
And that’s the assenting, secured, financial creditors.
Unsecured financial creditors will get a 0.62% recovery – provided they voted for the plan.
