Videocon Industries Ltd plans to raise as much as Rs30,000 crore by selling its stakes in oil blocks in Brazil, as part of the debt-laden company’s plan to repay bank loans.
“We will repay banks in the next 2-3 months,” Venugopal Dhoot, chairman and managing director of Videocon, said in a phone interview. “By selling oil blocks in Brazil, we hope to raise around Rs30,000 crore.”
Videocon Hydrocarbon Holdings Ltd (Videocon), the Cayman Islands firm that owns the stakes, has received interests from some interested parties, Dhoot said, without naming the companies.
Through its subsidiaries and affiliates, Videocon Industries holds economic interests in oil and gas concessions in Brazil, Indonesia and East Timor.
According to Videocon Industries’s FY17 annual report, the company is liable to repay the liability of other group companies to the extent of Rs5,082 crore as on 31 March 2017. The company’s total debt stood at Rs19,506 crore as of March last year.
Last month, the country’s largest lender State Bank of India (SBI) had filed separate insolvency proceedings against Videocon Industries and Videocon Telecommunications Ltd. They were both part of the second list of big corporate defaulters put out by the Reserve Bank of India (RBI). Read More…