EXCLUSIVE: GAIL wins bid to acquire JBF Petrochemical

State owned Gas Authority of India Ltd (GAIL) has emerged as the winning bidder to acquire the bankrupt JBF Petrochemicals, sources have told Business Today TV.

The sources added that the Committee of Creditors met last week and approved GAIL's resolution plan of Rs 2100 crore. JBF Petrochemicals has a total outstanding debt of Rs 5000 crore, with IDBI Bank having the highest exposure. The company was admitted to NCLT in February this year.

The GAIL offer works out to a nearly 60 per cent haircut for lenders. The resolution professional will now submit the resolution plan in NCLT Ahmedabad for approval.

NCLT Ahmedabad bench in February had appointed BDO backed Sundaresh Bhat as interim resolution professional.

More than half a dozen companies including Reliance Industries Ltd, a consortium of ONGC and Indian Oil, MCPI, the HPCL-Lakshmi Mittal joint venture and two Jindal group companies were seen to be in the race to acquire JBF Petro.

In September, lenders had asked bidders to increase the offer, but only ONGC-Indian Oil consortium had done so.

Founded as a yarn texturing firm in 1982, JBF Petrochemicals manufactures purified terephthalic acid (PTA). PTA is the raw material for polyester fibre and PET (polyethylene terephthalate) resin—used to make jars and bottles for mineral water and carbonated soft drinks.

Also read: Global recession may help cool prices in India

Also read: GAIL announces new jobs for engineer graduates. Check dates, application process