Of this, ICICI Bank
had disbursed the entire amount and the company was always current in its payments.
For the fiscal year ended March 2017, Videocon had paid interest of Rs 32 billion on its Rs 209-billion loan, as compared to interest of Rs 24 billion for the fiscal year 2015-16 (See chart).
A source said NuPower Renewables
will repay the loan with interest to the Videocon group by 2021, according to the initial contract signed in 2010.
“Videocon exited NuPower as it made huge losses due to Supreme Court
verdict on 2G that resulted in the company losing wireless telephony licences across India. Besides, its oil and gas business was hit due to falling oil prices,” the source said.
The loan from Videocon was given by a group entity, Supreme Energy, in 2010 which was later transferred to Pinnacle trust, with Kochhar as managing trustee, in 2013.
When contacted, NuPower said it received Rs 640 million from Supreme Energy as fully convertible debentures, which have already been converted into equity at fair market value.
Later, Pinnacle Trust purchased Supreme Energy along with Supreme Energy’s liability of Rs 640 million via optionally convertible debentures.
“The holders of optionally convertible debentures in Supreme Energy have the option to convert the same into 100 per cent ownership of Supreme, which, in turn, owns 10 per cent of NuPower Renewables, valued at Rs 640 million at fair market value,” the company said.
It did not specify any timeline to return the funds to Videocon.