GAIL (India) infuses Rs 2,101 crore in JBF Petrochemicals
GAIL (India), the government-owned natural gas transmission company, has infused Rs 2,101 crore in JBF Petrochemicals Limited (JBFPL), a company it acquired through the corporate insolvency resolution process.
In an exchange filing, GAIL (India) said that as per approved resolution plan, GAIL (India) Limited has infused Rs. 2, 101 crores (Rs 625 crore as equity and Rs 1,476 crore as debt) towards total resolution plan amount in JBF Petrochemicals Limited (JBFPL) on 1 June 2023.
Pursuant to implementation of Resolution Plan: a) 100% of the existing issued, subscribed and paid-up share capital of JBF Petrochemicals Limited (JBFPL) stands cancelled and extinguished; b) New equity shares have been issued and allotted to GAIL (India) Limited against the equity contribution of Rs. 625 crore.
“Accordingly, JBFPL has become a wholly-owned subsidiary of GAIL with effect from 1 June 2023,” GAIL (India) said in the exchange filing.
The Ahmedabad bench of the NCLT in March this year gave its nod to the resolution plan submitted by public sector GAIL (India) for JBF Petrochemicals Ltd. The Rs 2101-crore resolution plan was earlier approved by the committee of creditors by 100% vote share.
Others in the fray for JBF Petrochemicals Ltd were a consortium of Indian Oil Corporation Limited and ONGC Limited and MPCI Private Limited.
The Rs 2101-crore resolution plan offered to pay the assenting secured financial creditor a sum of Rs 2,015 crore, 43.23% of the total admitted claims of Rs 4,662 crore. Assenting unsecured financial creditors get Rs 14 crore, which is 5.7% of the total admitted claims of Rs 253 crore.
The insolvency petition against JBF Petrochemicals was filed in NCLT by IDBI Bank, which was admitted by the NCLT in January 2022.
JBF Petrochemicals Limited was a Dadra Nagar Haveli, Silvassa-based company incorporated in 18 September 2008. The company had planned to set up and commission a 1.25 MMT per annum capacity Purified Terephthalic Acid plant at Mangalore SEZ.
Also Read: GAIL (India) resolution plan for JBF Petrochemicals approved by NCLT
