The National Company Law Tribunal (NCLT), Chennai bench, has granted Haldia Petrochemicals more time to submit a revised resolution plan for Nagarjuna Oil Corporation Ltd (NOCL). The development comes after multiple efforts by the Committee of Creditors (CoC) to get a plan with acceptable valuations, according to sources. There are around 15 lenders for NOCL.
Sources said that the lenders fixed a liquidation valuation of Rs 14.50 billion and selection of a resolution plan has been delayed due to this demand.
NOCL, a joint venture between Hyderabad's Nagarjuna Fertilizers & Chemicals Ltd (NFCL) and TIDCO of Tamil Nadu Government, is carrying out a 6-million-metric-tonne-per-annum (MMTPA) petroleum and oil refinery project in Cuddalore, some 200 kilometers south of Chennai, which is stalled due to shortage of funds.
The NCLT had earlier extended the period for Corporate Insolvency Resolution Process (CIRP) by 90 days from January 21, 2018. The extension was approved by the National Company Law Tribunal (NCLT), as the process was not completed in the stipulated 180-day period. The matter has been further extended.
In August 2016, NOCL promoter Nagarjuna Oil Refinery had told the exchanges that various prospective investors, including public sector companies such as Indian Oil, had sought information on NOCL's project at Cuddalore. PSUs like HPCL and ONGC, and foreign investors like Shell had also made moves to acquire NOCL, but none of these fructified.
The project, for which the construction work started in 2009, had been partially completed in December 2011, when a cyclone and shortage of funds stopped work. The plant is capable of meeting Euro-VI requirements with some additions. According to earlier reports, the company has around Rs 90 billion of debt, of which Rs 80 billion is a loan from 15 banks. Once the recovery is made and the vendors, employees and other are repaid, the shareholders would be paid based on the approved mechanism.