Mumbai: The Mumbai bench of the National Company Law Tribunal (NCLT) on Thursday admitted that Videocon Industries Ltd. was under the Insolvency and Bankruptcy Code. Anuj Jain from KPMG has been appointed as the interim resolution professional at the company by the NCLT.

Last year in December the insolvency petition had been filled by State Bank of India against Videocon Industries, following directions from the Reserve Bank of India. The regulator in August 2017 had sent a list of 29 stressed corporate accounts to bankers for action under the insolvency process. The RBI gave banks six months to resolve the cases outside the NCLT, failing which, the insolvency process would be initiated.

According to the bankers, the claims of financial creditors may exceed Rs 20,000 crore. The total of 27 banks consisted by Indian lending association to Videocon Industries, which includes SBI and its five associate banks. 

Sources revealed that Videocon Industries fell into financial stress after its oil business suffered losses. The company tried to sell some of its assets and repay banks loan but nothing serious materialised.

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