Videocon ruling raises questions for India’s insolvency court

The Insolvency and Bankruptcy Code was supposed to provide swift and meaningful resolution to help get state-owned Indian banks back on their feet. Does a 95% haircut with questions around confidentiality achieve that?

State Bank of India, 18.05%: Voted for.

IDBI Bank, 16.06%: Voted for.

Union Bank of India + Corporation Bank + Andhra Bank, 9.07%: Voted for.

These lines come from a judgment in the National Company Law Tribunal, Mumbai Bench, under India’s Insolvency and Bankruptcy Code, and they refer to the resolution of a failed company called Videocon Industries.

The list goes on through 35 creditors; a few dissent (Bank of Maharashtra, IFCI, a couple more) and most of the tinier creditors abstain.