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Modi’s demonetisation, SC, Brazil responsible for bad debt pile: Videocon on Insolvency Plea

Team SoOLEGAL 13 Jun 2018 6:00pm

Modi’s demonetisation, SC, Brazil responsible for bad debt pile: Videocon on Insolvency Plea

Following an insolvency petition filed against debt-ridden Videocon, the Indian manufacturer of consumer electronics blamed Modi’s demonetisation, the Supreme Court and the Brazilian government for its Rs 39 billion debt pile.

The petition was filed against Videocon Industries by State Bank of India in a bankruptcy court. The court admitted the petition and ordered debt reorganisers to take over Videocon’s management, which made the company file an appeal to wrest back control, as per an exchange filing on Tuesday.

In the filing, Videocon said that Prime Minister Narendra Modi’s 2016 cash ban blocked supplies that the company needed for manufacturing cathode ray tube televisions, thereby forcing the company to shut the business.

Videocon further said it suffered losses because of its oil-and-gas business getting entangled in red tape in Brazil; while its telecommunications venture suffered losses following the Supreme Court order that led to the cancellation of 21 2G telecom licenses.

Videocon shares, which have jumped a whopping 96% over the past five years, following the development hit a low at Rs 7.65 on the NSE on June 12.

Tagged: Videocon   Demonetisation   Supreme Court   Brazilian Government   Narendra Modi   NSE  
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