The committee of lenders of Nagarjuna Oil Corporation Ltd (NOCL) has refused to reduce or even reconsider the liquidation value of ₹1,450 crore and has demanded that Haldia Petrochemicals, the sole bidder, make an upfront payment of ₹700 crore and the remaining in five years for the revival of the company, according to sources.
On Tuesday, at a hearing before the Chennai Bench of the National Company Law Tribunal (NCLT), the counsel for the committee of creditors (banks led by SBI and IDBI) presented a memo listing the revised terms, which were acceptable to the lenders, as discussed in their meeting on October 22.
November deadline
Haldia has sought two weeks to submit a revised proposal as insisted by the lenders. After hearing both the sides, the Law Tribunal Bench ordered Haldia to convey its board’s decision to the committee of creditors on November 1.
It also said the lenders should consider and decide on Haldia’s fresh proposal on November 13 and submit its final recommendation to the tribunal on November 15.
The 270 days for finding a resolution plan under the Insolvency and Bankruptcy Code (IBC) for NOCL ended in April 2018.
The fate of NOCL hinges on Haldia Petro’s ability to make upfront payment of ₹700 crore and the balance ₹750 crore in five years. NOCL was setting up the refinery in Cuddalore and the project was one of the biggest for Tamil Nadu.
The State government had offered tax incentives for it during the Global Investors’ Meet held in 2015.
