NCLT approves IOCL’s Rs 148-crore resolution plan for Mercator Petroleum
The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the Rs 148-crore resolution plan by government-owned Indian Oil Corporation Ltd (IOCL) for Mercator Petroleum.
As per the resolution plan, IOCL will pay Rs 135 crore to secured financial creditors, who had admitted claims of Rs 291 crore. No payment has been provided for unsecured financial creditors, who had admitted claims of Rs 118 crore. The resolution plan offers Rs 5.40 crore to operational creditors – vendors, workmen, employees and statutory dues – against their total admitted claims of Rs 73 crore.
The CIRP cost of Rs 8.7 crore will be funded by the resolution applicant. However, if the CIRP cost is in excess of Rs 8.7 crore, then the excess amount so paid shall be adjusted against upfront Secured Financial Creditors payment.
Earlier, the resolution plan for Mercator Petroleum was approved by the committee of creditors by 100% vote share.
Insolvency process against Mercator Petroleum was initiated by Halliburton Offshore Services Inc, a Cayman Islands-based company engaged in the business of providing services in the upstream oil industry, in August 2021. Mercator Petroleum, which is engaged in upstream oil industry through block ownership and project execution services, had defaulted on a payment of Rs 2.87 crore.
The acquisition of Mercator Petroleum assets by Indian Oil Corporation comes as a big milestone for IBC as it is for the first time a PSU company has acquired an asset through CIRP.
Mercator Petroleum Ltd. (MPL) was a wholly own subsidiary of Mercator Ltd. (ML). MPL is engaged in the business of Petroleum Exploration, Development and Production in India and abroad.
Mercator Limited (earlier known as Mercator Lines Ltd) is Mumbai based International organisation. As a group, Mercator has diversified business interests in Coal, Oil & Gas, Commodity Transportation and Dredging. From humble beginnings, Mercator has diversified from being only a Shipping company to an Energy focused conglomerate.
Also See: Indian Oil Corporation set to acquire assets of Mercator Petroleum
