SBI initiates bankruptcy process against Videocon

MUMBAI: State Bank of India initiated bankruptcy proceedings against Videocon Industries on Monday as the deadline set by the regulator to resolve the Rs 29,000 crore default failed. The National Company Law Tribunal, a dedicated bankruptcy court, would hear the case on January 24. This was one of the 28 cases identified by the Reserve Bank of India to be recovered through bankruptcy if resolution failed. The bank said the company owes the consortium of lenders Rs 29,000 crore, of which Rs 3,900 crore is due to SBI. This makes Videocon the largest defaulter in the RBI’s second list that seeks to clean the banking system fraught with sticky assets. The matter was adjourned after the company claimed the bank did not serve adequate notice to the corporate debtor.