Vedanta entity, OVL among the companies in the race for Videocon Oil & Gas Co

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The resolution professional of VOVL, the oil and gas exploration company of Videocon Industries, has received over a dozen Expressions of Interest (EoIs) from one entity, ONGC Videsh, Saiml Pte Ltd of Singapore and two Separate candidacies from Brazilian oil explorers Petro Rio SA and Geneva SA, people familiar with the matter, said.

Other candidates for EoI include Eight Capital, Dubai-based Citax Holding, Zinnia Fund, Murphy Worldwide, CFM Asset Reconstruction Company and Prudent ARC, the sources said.

Of those candidates for expression of interest, Petro Rio SA and Geneva SA had already submitted binding bids, but both were not opened as the lenders ordered the PR to resume the bidding process, as indicated.

Resolution professional Pravin Navandar issued a firm call for tenders before January 15.

The RP did not respond to a request for comment.

“ONGC Videsh is mandated to seek business development opportunities in the oil and gas industry globally. The VOVL resolution process is one such opportunity,” ONGC said in an email response.

The lenders’ decision to restart the process stems from fears that a very low bid like that from Videocon Industries could impact the resolution process. Therefore, the lenders persuaded the oil and gas exploration company ONGC to participate in the resolution process. According to the lenders, the participation of the SOE would bring credibility to the resolution process.

In the case of Videocon Industries, recovery was 4.15% of the total claims made by financial creditors. This prompted experts to comment that the consumer durables business was sold at a disposable price.


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