A consortium of 17 banks led by the State Bank of India (SBI) has reportedly initiated measures to sell overseas oil and gas assets owned by Videocon Industries’ subsidiary Videocon Oil Ventures (VOVL).

Creditors have hired SBI Capital Markets (SBICAP) to identify a suitable buyer for the assets.

As part of the sale process, SBICAP has sought expressions of interest (EoIs) from companies for acquisition of the company’s assets in Brazil, Indonesia and East Timor, livemint.com reported citing unnamed sources.

Through the proposed sale, the lenders aim to recover at least 50%-55%, or $2.5bn-$3bn, of the total amount of $4.5bn extended to VOVL through a loan.

“The lenders aim to recover at least 50%-55%, or $2.5bn-$3bn, of the total amount of $4.5bn extended to VOVL through a loan.”

The lending banks advanced credit facilities to VOVL and its offshore subsidiary IBV Brasil Petroleo, which is the company’s joint venture with Bharat PetroResource.

The company’s Brazilian offshore block has turned a non-performing asset (NPA), according to the publication.

SBICAP was quoted by livemint.com as saying: “SBICAP has been appointed as process adviser by a consortium of lenders led by SBI to identify firms having adequate capability for undertaking the monetisation of upstream oil and gas assets located in South America and South East Asia of offshore subsidiaries of an Indian company.”

The move follows the Reserve Bank of India’s directive in February this year, which mandates banks to put a resolution plan in place within 180 days of the first default.

According to the publication, VOVL and its partners had plans to start production from fields in Brazil and Indonesia by next year. However, the plans have been placed on the put back until at least 2021.