Videocon, Jaypee dip even as lenders keep them out of insolvency process

STOCK MARKET of Videocon and Jaiprakash Associates shed up to 5% on the BSE even as lenders decided to keep Videocon Industries, and Jaiprakash Associates out of the insolvency process as these companies are in advanced stage of debt resolution.

Videocon hit its lower circuit of Rs 16.70, down 4.84%, while Jaiprakash Associates dipped nearly 2% to Rs 17.65 on the BSE.

A senior official of a public sector bank said Videocon Industries was not taken to the NCLT because it was close to the resolution of its  Rs 21,500-crore debt and because it had sold its Kenstar brand and corporate headquarters to repay loans. As per Videocon officials, its debt worth Rs 23,000 crore is housed with its oil subsidiary - Videocon Hydrocarban which has not defaulted on its loans.

Videocon was among the 28 companies which were in the Reserve Bank of India's second list of defaulters and lenders were asked by the regulator to resolve these cases by Friday.