Central Public Sector Enterprise (CPSE), GAIL (India) Limited emerged effective in Corporate Insolvency Resolution Process (CIRP) of JBF Petrochemicals in competitive bidding translucenting significant India petrochemical gamers while doing so, the business revealed through an exchange filing.
GAIL was adjudged as a Successful Resolution Applicant and Hon’ble NCLT vide Order March 13, 2023 authorized Implementation of GAIL’s Resolution Plan for JBF Petrochemicals Ltd. The effective pay and deal closure is among the fastest in the history of NCLT post-Covid duration.
The acquisition of JBFPL provides GAIL a chance to include a brand-new item Purified Terephthalic Acid (PTA) to GAIL’s existing petrochemical portfolio. GAIL is eagerly anticipating restore the business operations of JBFPL and is dedicated to turn it around as a prospering production entity.
GAIL is eagerly anticipating restore the business operations of JBFPL and is dedicated to turn it around as a prospering production entity.
GAIL’s venture into this emerging space is anticipated to supply a definitive push to domestic production sectors of fabrics and family pet chips which are significant customers of PTA consequently minimizing considerable import reliances.
GAIL has actually already instilled Total Resolution Plan Amount of Rs 2,101 crores, hence obtaining 100 percent stakes in JBFPL with JBFPL ending up being a Wholly Owned Subsidiary (WOS) of GAIL. The cost of acquisition is considerably lower than a greenfield task of comparable magnitude. Further, all the erstwhile financial institutions, consisting of Employees and Workmen of JBFPL have actually been paid their claims according to the order of Hon’ble NCLT.
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Published on: Thursday, June 08, 2023, 05:08 PM IST
