Bankers and other financial institutions will take 94 per cent ‘haircut’ in Nagarjuna Oil Corporation (NOCL) with Haldia Petrochemicals (HPL) agreeing to pay ₹600 crore to revive NOCL, which owes to secured financial creditors, including SBI and IDBI, ₹9,864.16 crore.
The NCLT on Thursday approved HPL’s scheme to revive NOCL in the port town of Cuddalore in Tamil Nadu. A proposal, under Section 230, was submitted by NOCL liquidator V Mahesh to give a fresh lease of life to the suspended ₹3,500-crore project.
HPL proposes to effect the payment in phases through a Special Purpose Vehicle (SPV).
The liquidator submitted that the NOCL has dues to secured financial creditors (₹9,864.16 crore); unsecured (₹10.98 crore); operational creditors (₹109.91 crore — revised to ₹122.85 crore as on the date of Stakeholders Committee Meeting); employee claims to the tune of ₹42.85 crores (stands revised to ₹47.42 crore) and statutory dues claims filed and admitted by the liquidator at ₹50.59 crore.
It was further submitted that the recovery amount from NOCL is barely 6 per cent of the admitted claims of the secured creditors and the other categories of the claimants are unlikely to get any amounts, including Statutory Authorities, barring priority payments payable as per Section 53 of the IBC, 2016.
The order said dissolution of NOCL cannot be ordered by the tribunal and to such an extent the scheme, as filed by HPL, cannot be granted.
The liquidator is directed to complete the dissolution process of NOCL after properly liquidating the assets which fall outside the purview of “Project Assets” and also making necessary compliance in relation to the same, an application for dissolution may be filed by the Liquidator, said the order issued by B Anil Kumar (member – technical) and R Varadharajan (member – judicial).