Haldia Petrochemicals will acquire Nagarjuna Oil Corporation Limited (NOCL), as per the scheme of ₹ 600 crore approved by the National Company Law Tribunal, Chennai.
According to the scheme, secured lenders would get ₹ 560 crore, or about 6% of their total filing claims ₹ 9,864.14 crore. Lenders include State Bank of India, IDBI Bank, Canara Bank and Syndicate Bank.
The NCLT had ordered liquidation of the NOC, as there was no resolution of any kind. Later, Haldia presented a resolution plan under section 230 of the Companies Act. Section 230 is a mechanism to ensure the institutional settlement of disputes between creditors and the company. This ensures that the company has a chance to protect itself from bankruptcy or liquidation by entering into deals with at least a majority of creditors.
Meanwhile, other claimants are unlikely to receive any amount for their claims, including statutory authority, insolvency and priority payments payable in accordance with Section 53 of the Bankruptcy Code 2016. Also the shareholders’ equity of 1800 crores is also erased.
According to a source, banks have to recover ₹ 560 crore out of the principal amount of ₹ 2,200 crore, which is around 25%. Interest is high because the account was NPA long before it was sent to NCLT.
In September 2019, Haldia Petrochemicals signed an MoU with the Government of Tamil Nadu to invest approximately ₹ 50,000 crore in Cuddalore district, by converting the NOCL facility into a refinery-cum-petrochemical complex.
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