Lenders of VoVL approve of BPCL's resolution plan

The event, lenders of VoVL, Videocon Industries' oil and gas exploration company, nearly unanimously approved a resolution plan proposed by Bharat Petroleum Corp (BPCL). VoVL, which is going through bankruptcy, obtained 99.96% of the votes in favour of a proposal to sell the business to the government-owned BPCL.

According to the people named above, one unsecured lender with 0.04% debt voted with his or her abstention. The VoVL's resolution plan was up for voting until June 22.

The resolution specialist will submit the strategy for approval to the National Company Law Tribunal (NCLT). According to the individuals named above, the VoVL resolution will rank among the most expensive cross-border insolvency remedies. The majority of VoVL's assets, including its oil exploration blocks, are located in Brazil, however the sale procedure was carried out in India.

In order to conduct oil and gas exploration in Brazil, Videocon Energy Brazil and BPCL's subsidiary BPRL Ventures BV formed a 50:50 joint venture. According to the contractual agreements imposed by Brazilian law, BPCL has the first right to match any offer that lenders receive for VoVL oil basins as a JV partner. 90% of VoVL's lenders cast votes for one of two resolution proposals in mid-April.