5 years of IBC: Loans taken for telecom, oil assets sank Videocon

VIL's problems began after it entered the telecommunications (telecom) business and its second generation (2G)-based telecom licences were cancelled by the Supreme Court (SC) in 2012

The Insolvency and Bankruptcy Code’s journey so far has been a mixed bag. The steel sector turned out to be one of the major beneficiaries of the Code. But insolvency proceedings of large companies like Reliance Communications and Videocon have been derailed, in part due to litigation. The Reserve Bank of India’s move not allowing asset reconstruction companies to bid for stressed assets has further protracted the insolvency process.

Videocon Industries (VIL) - once India’s biggest consumer electronics company - was sent to the bankruptcy courts in June 2018 by State Bank of India (SBI). This was after the consumer