The Kolkata based firm as filed a fresh bid for the refinery of Nagarjuna oil in Cuddalore district of Tamil Nadu, this is one of the largest owned private refineries in the country which is currently facing insolvency with an estimated outstanding balance of about $1.4 billion both to it's lenders and operational creditors. If the board of creditors decides to take Haldia Petrochemicals on their offer, it would be one of the first of its kind in India for the resolution process of a privately owned refinery which is expansive in its dimensions with about 2185 acre property and a fully functional refinery with advanced Sulphur Recovery Units (SRU's) installed. The company is said to have offered a lower amount than the valuation of assets arrived by the insolvency resolution professional earlier of about 1450 crore, which is a seventh of the total outstanding debt of the plant. With cents on the dollar at, offer the resolution will not be an easy piece of business for the creditors who will have to take a huge haircut on their lending's but the banks involved are also looking at other Asset Reconstruction Companies (ARC's) to look at this deal and make an offer themselves. One such ARC that had showed interest in the refinery is Adani Ports which is interested not just in the production capacity of the plant but also the land it holds, which can power a big port and potentially another big trading hub which if given the development rights under the deal would make Adani Ports one of the leading port developers in India along with the highest operational workload in the shipping and logistics sector. The interest of the buyer in this deal are varied and to whom it ultimately goes shall be decided next month in the creditors meeting, but to summarize from the Haldia Petrochemicals perspective, there seems to be a scheme for the revival of the plant and their action plans have already been submitted to the concerned authorities.
Tags : SRU's, ARC's,