GAIL (India) emerged the winning bidder for JBF Petrochemicals’ mountain of debt. The committee of JBF’s creditors unanimously approved GAIL’s resolution plan, granting it permission. A number of big businesses, including GAIL, ONGC, Reliance, Indian Oil, and others, expressed interest in JBF Petrochemicals, which has defaulted on a bank debt of over 5,000 crore.
In its regulatory filing, GAIL said, “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 the 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.”
JBF Petrochemicals, which was admitted to NCLT in February this year, has a total outstanding debt of Rs 5,000 crore. (Bloomberg file photo)
State-owned GAIL (India) has emerged as the successful bidder to acquire debt-laden JBF Petrochemicals, following the approval of its resolution plan by the latter’s Committee of Creditors (CoC). The firm now needs approvals from the bankruptcy tribunal to complete the process.
The resolution professional informed that GAIL has been declared a successful resolution applicant. The resolution plan of GAIL (India) has been approved as per the requirements of the Insolvency and Bankruptcy Code (IBC), the company said in a regulatory update.
As per the terms of the Request For Resolution Plan (RFRP), GAIL (India) will now have to submit a ‘performance security’ and subsequently get approvals from the National Company Law Tribunal’s (NCLT) Ahmedabad bench, it added.