The Gas Authority of India Limited (GAIL- India) emerged as the successful bidder for debt-laden JBF Petrochemicals Ltd through its resolution process under the Insolvency and Bankruptcy Code (IBC), local media reported.

GAIL’s resolution plan received a 100 percent vote from the committee of creditors of JBF, and a letter of intent paved the way to acquire JBF Petrochemicals through the insolvency route.

JBF Petrochemicals is a manufacturer of Purified Terephthalic Acid (PTA) which is used in the manufacturing of textiles, food-grade plastics and bottles, and as a coating in the paint and steel industries.

GAIL was among a host of major companies, like ONGC, Reliance Petroleum, IndianOil, CFM ARC, and others, that showed interest in JBF Petrochemicals and later defaulted against a bank loan of Rs 5,000 crore. GAIL participated in the process of request for a Resolution plan for JBF Petrochemicals in the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy code 2016.

GAIL, in a regulatory filing, 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 percent of the members of the Committee of Creditors (CoC) by value and has been approved as per the requirements of the IBC.”

IDBI Bank, which is the lead creditor, owes $252 million of loans outstanding, followed by other lenders like Exim Bank, Indian Overseas Bank, Bank of Baroda, and Union Bank of India, it said.

For more information visit www.gailonline.com

31st October 2022