The Committee of Creditors (CoC) of Nagarjuna Oil Corporation (NOCL) is reportedly considering calling for fresh bids for the debt-laden oil firm if the sole bidder BPCL does not raise its current offer.
While the bid amount is not known, sources said the CoC, which met here on Friday, considered BPCL’s offer as too low and wanted the bidder to raise its offer to at least match the committee’s valuation of ₹1,500 crore.
BPCL is understood to have taken strong objection to this on the grounds that other potential bidders now would get to know the details of its bid terms and enjoy an unfair advantage. “The ball is now in the Resolution Professional’s court,” an official, who did not wish to be identified, said.
Citax Ventures was the only other player in the fray but its bid was not considered as it had not deposited the bid security amount of ₹10 crore.
BPCL indicated to the bankers it was not proposing to acquire the entire firm as NOCL was facing some litigation. Further, BPCL expressed reservations regarding the extent of the land bank in NOCL’s possession.
The resolution plan has to be selected and sent to the NCLT by April 20, as per the amended Insolvency and Bankruptcy Code.
