In the recent reports, Videocon is proved to be bankrupt which was accepted by the NCTL. It is a National Company Law Tribunal. In early June lenders of bankrupt Videocon claims about Rs 59000 crore. Out of this vast amount bankrupt Videocon accepts the claims of worth Rs 57000 crore.

The Financial Condition of Bankrupt Videocon

According to the reports of sources, it was cleared that, the company bears the loss of Rs2709 crore for which the net sales is worth Rs13,743 crore. The data provided here is for the financial year 2017 which was ended this year March.

Essar steel which is the primary creditor of Videocon claims Rs54917 crore. Apart from this one of the famous steel industry Bhushan Steel claims Rs56079 crore. The data showed here is on the company’s website.

NCLT Mumbai branch admitted Venugopal who is the owner of Videocon insolvent. Videocon was proved bankrupt on June 6 under the Bankruptcy Code (IBC). Apart from this all the promoters of the company filed the petition in the public bank State Bank of India. The petition is all about the insolvency which was recorded in December 2017.

All the promoters also claim that the bankrupt Videocon can pay their dues by selling their properties. Videocon has land assets in various cities like Mumbai, Bengaluru, Chennai, and Kolkata.

After 2 days of admitting insolvency by the NCLT, subsidiary Videocon companies Videocon telecommunications also admitted that they are bankrupt.
On July 6 all the creditors of Videocon telecommunications filed their claims. Creditors claimed total pf worth Rs20552 crore. Out of total claimed amount bankrupt

Videocon accepted the claim of worth Rs18406 crore.

Creditors of Bankrupt Videocon

List of primary creditors of Videocon industries are discussed here: it includes Central Bank of India. SBI, ICICI Bank, IDBI, Union Bank and other 45 banks too. All these banks claimed worth Rs58731 till now. Out of all these creditors, the highest claim is of SBI that is worth Rs11175 crore followed by IDBI Bank of worth Rs9562 crore.

The primary sources that become the trouble for bankrupt Videocon are bearing of heavy losses in telecommunications, electronics business, home appliances business and heavy losses in oil.

High edge competition in the home appliances business causes great trouble to the bankrupt Videocon.