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Haldia Petro to acquire Coastal Oil & Gas Infra in bankruptcy

A bankruptcy court order approving Haldia Petrochemicals’ proposal to acquire Coastal Oil & Gas Infrastructure Pvt Ltd at just Rs 1 crore above liquidation value has again highlighted concerns raised by a Mumbai, which had questioned the confidentiality of valuation reports in the Videocon resolution case. Haldia Petrochemicals’ proposal, promoted by Purnendu Chatterjee, also represents only 3% of Coastal Oil’s admitted claims.

Last week, the Amravati bench of the National Company Law Tribunal (NCLT) approved Haldia Petrochemicals’ resolution plan of Rs 37.50 crore for Coastal Oil. The liquidation value was Rs 36.46 crore.

The unlisted Coastal Oil resolution professional had admitted Rs 1,245 crore in claims, including Rs 1,198 crore from financial creditors and the balance from trade creditors and employees.

In response to a question from the judge to Coastal Oil’s PR about lower recovery, he replied that the offer was better than the liquidation value, according to the NCLT order.

Resolution professional Sai Ramesh Kanuparthi and Haldia Petrochemicals did not respond to emailed questions from ET until press time on Wednesday.

Coastal Oil is a special purpose company established by Abir Infrastructure Pvt Ltd to construct, operate and maintain a crude oil terminal at the refinery premises of Nagarjuna Oil Corp Ltd. In October last year, the parent company, Abir Infrastructure, which was also subject to insolvency proceedings, was sold to Srei Multiple Assets Investment Trust for Rs 11.1 crore, well below the liquidation value of Rs 37.25 crore, according to an order on the NCLT website. Abir’s total admitted claims stood at Rs 1,339 crore and the recovery was less than 1%. State Bank of India was the largest lender with admitted claims of Rs 283 crore, followed by Srei Equipment Finance at Rs 120 crore, according to information posted on Abir’s website.

Earlier, the Mumbai NCLT judge disapproved of a resolution proposal for Videocon Industries and its 12 units which was slightly above liquidation value and approved by 95% of its lenders. Twin Star Technologies, promoted by billionaire Anil Agarwal, offered Rs 2,962 crore, slightly above the liquidation value of Rs 2,568 crore. The recovery for Videocon lenders was 4.15%. The lenders restarted the process of selling Videocon after the National Company Law Appellate Tribunal observed that Twin Star’s plan did not comply with the Insolvency and Alabama bankruptcy code.

The NCLT order on Coastal Oil shows that 68.68% of lenders voted in favor of Haldia Petrochemicals’ plan on January 20.