GAIL declared successful applicant for JBF Petrochemicals under IBC

State-run GAIL Limited on October 18 said that it has been declared a successful applicant for debt-ridden JBF Petrochemicals under the Insolvency and Bankruptcy Code (IBC).

"Vide Letter of Intent (Loi) dated 16.10.2022, the Resolution Professional in the matter of CIRP has informed that GAIL (India) Limited has been declared a Successful Resolution Applicant and GAIL's Resolution Plan received the affirmative vote of 100% of the members of the Committee of Creditors (CoC) by value and has been approved as per the requirements of the IBC," GAIL said in a regulatory filing.

JBF Petrochemicals has a total outstanding debt of Rs 5,000 crore, with IDBI Bank having the highest exposure. The company was admitted for insolvency proceedings by Ahmedabad National Company Law Tribunal in February after the collapse of an out-of-court resolution, which was in the works since October 2017.

After receiving the bid to acquire JBP Petrochemicals, GAIL will submit Performance Security as per terms of RFRP, subsequent to
which the Resolution Professional shall submit GAIL's Resolution Plan for approval to NCLT, Ahmedabad Bench in accordance with the provisions of the IBC and the rules and regulations made thereunder, it added.