GAIL (India) Ltd said it has won the bid to acquire the stressed asset of debt-ridden JBF Petrochemicals Ltd through its resolution process under India’s Insolvency and Bankruptcy Code (IBC).
“The Resolution Professional in the matter of CIRP has informed that GAIL (India) Limited has been declared a Successful Resolution Applicant and GAIL’s Resolution Plan received affirmative vote of 100% of the members of the Committee of Creditors (CoC) by value and has been approved as per the requirements of the IBC,” the company said in a regulatory filing.
JBF Petrochemicals is incorporated under the Companies Act, 1956, and has its registered office at Survey Number 273, Village Athola, Dadra Nagar Haveli, Silvassa. The company was incorporated on September 18, 2008, with a view to setting up and commission a 1.25 million tonne per annum capacity purified terephthalic acid plant at Mangalore Special Economic Zone.
JBF Petrochemicals has a total outstanding debt of Rs 50 billion. It is currently undergoing the corporate insolvency resolution process (CIRP) in accordance with the extant provisions of IBC and other relevant rules and regulations notified by the order of the National Company Law Tribunal (NCLT), Ahmedabad Bench.
Further, GAIL has to submit performance security, subsequent to which the resolution professional will submit GAIL’s resolution plan for approval of the NCLT, Ahmedabad Bench, in accordance with the provisions of the IBC, the company added.
Along with GAIL, other companies including Reliance Industries Ltd, a consortium of ONGC and Indian Oil, MCPI, the HPCL-Lakshmi Mittal joint venture and two Jindal group companies were seen to be in the race to acquire JBF Petrochemicals.