GAIL (India) has received an approval from the National Company Law Tribunal (NCLT) for its Rs 2,079 crore resolution plan for JBF Petrochemicals, which owed Rs 7,918 crore to a consortium led by IDBI Bank. The other secured lenders of the company are Union Bank of India, Bank of Baroda, Exim Bank and Indian Overseas Bank, among others.
JBF Petrochemicals, a subsidiary of polyester producer JBF Industries, was set up in September 2008 to operate a planned 1.25 million tonnes per year purified terephthalic acid (PTA) plant at Mangalore, Karnataka. The plant, which is a backward integration project for JBF Industries' polyester plants, was commissioned in 2017 but stopped operations after the company defaulted on its loans in the same year.
On February 1, 2022, JBF Petrochemicals' lenders, led by IDBI Bank, decided to initiate insolvency proceedings for the company and appointed Sundaresh Bhat as the Resolution Professional.
GAIL (India) is India’s leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production & transmission, LNG regasification, petrochemicals, city gas, E&P, etc.
