Videocon’s demise may mean losses for banks worth 90 k Crores!
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Videocon’s demise may mean losses for banks worth 90 k Crores!

Videocon logo
Sourav
Written by Sourav
[email protected] | | Published on: April-06-2019 09:54 AM

Videocon Group has admitted that it owes all its lenders a huge debt, with the outstanding amount being around ₹ 90 K Crores. This may just be India’s biggest case of corporate bankruptcy in the history of Indian banking! This debt is owed to both, public and private lenders. It is mainly owned by two of Videocon Group’s verticals – Videocon Industries Ltd and Videocon Telecommunication Ltd. The former company owes ₹ 59,451.81 Crores to its lenders while the latter owes ₹ 86,125.68 Crores. This is an immense debt that the company is not likely to be able to pay back. As a result, banks and other lenders will suffer losses that are staggering. Of all the lenders, State Bank of India is one of the few to suffer the largest hits.

Apart from mainstream banks, there are also other operational creditors that have claimed that Videocon Group owes them large sums of money. These claims are worth ₹ 31,117, 971,029 (VIL) and ₹ 12,669,978,507 (VTL) which then makes the total more than ₹ 90,000 crores.

videocon

image source: livemint.com

Many sources are claiming that this will be the biggest case of private sector bankruptcy seen in India.

About Videocon

Videocon is one of the largest diversified companies to come out of India. The brand has many different manufacturing units spread all across the world, including countries like mainland China, Mexico, Italy, and Poland, apart from India. This brand offers many different kinds of products to its consumers, including consumer electronics like microwaves, AC, color TVs, refrigerators, and washing machines, mobile phones, DTH services, Telecommunications services like Bharti Airtel (which was shut down in 2017), Retail businesses in the form of Planet M, Next, and Digiworld, and also petroleum businesses. It owns a 25% stake in petroleum brand Ravva Oil Field, which is basically operated by Cairn India in Andhra Pradesh.

However, in spite of all these offerings, Videocon Group has reported losses for over 10 previous quarters. It has now submitted itself for Insolvency Proceedings as it cannot continue to operate under such heavy losses.

About the author

Sourav

Sourav

Excellent story-teller, with a background in SEO and Digital Marketing.
Likes to write and give form to opinion and incidents.

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