Three others – Reliance Industries (RIL), a consortium of HPCL-Mittal Energy and BC Jindal Group’s Jindal Poly Films – which had submitted expressions of interest have stayed away from placing formal bids for the chemicals company, the people said on condition of anonymity as the information is still private.
A consortium of Oil and Natural Gas Corporation (ONGC) and Indian Oil Corp, besides GAIL (India) and Kolkata-based MCPI have submitted formal bids to take over Mangalore-based bankrupt company JBF Petrochemicals, two people familiar with the deal said.Three others – Reliance Industries (RIL), a consortium of HPCL-Mittal Energy and BC Jindal Group’s Jindal Poly Films – which had submitted expressions of interest have stayed away from placing formal bids for the chemicals company, the people said on condition of anonymity as the information is still private.”Banks have received three bids, which will now be opened and evaluated for both the quality and quantity on offer,” said one of the persons cited above. Tuesday was the last day for submission of bids.
ONGC has confirmed its interest in JBF Petrochemicals, ET had reported in its August 23 edition. GAIL and MCPI did not reply to an email seeking comment till press time.GAIL is India’s leading gas trading, transmission and petrochemicals company, with a 70% market share in gas transmission in the country.MCPI is a maker of purified terephthalic acid (PTA) and part of The Chatterjee Group (TCG), which had acquired MCPI from Mitsubishi Chemical Corporation in 2016.Bankers are expecting a handsome recovery from the loans outstanding of the debt-laden chemicals maker, which was admitted for insolvency proceedings in February. The company has been struggling for the better part of the last decade due to unsustainable debt. Lenders finally decided to take the IBC route after five years of trying to find a buyer for the company.JBF Petrochemicals owes lenders a total of $463 million (about ₹3,658 crore) in principal, primarily from external commercial borrowings and foreign currency term loans. IDBI Bank is the lead lender with $252 million of loans outstanding. Other lenders include Exim Bank, Indian Overseas Bank, Bank of Baroda and Union Bank of India. Total outstanding including debt is close to ₹5,000 crore.Founded as a yarn texturing firm in 1982, JBF Petro manufactures PTA, which is used to make polyester value chain products used in consumer goods, textile and packaging industries, like PET bottles used to sell soft drinks.Last year, Dubai-based Citax Energy’s $190-million offer to take over the debt did not materialise as the bidder could not pay despite numerous extensions. Lenders are hoping that they can close the deal this time.