NEW DELHI: State-owned Indian Oil Company (IOC) has acquired Mercator Petroleum for about Rs 148 crore in an insolvency continuing, in accordance with regulatory filings by the corporate. “The decision plan submitted by IOC for acquisition of 100 per cent stake in Mercator Petroleum Restricted (MPL) has been permitted by the Nationwide Firm Regulation Tribunal, Mumbai Bench vide its order dated November 2, 2023 below the related provisions of the Insolvency and Chapter Code, 2016,” the agency stated within the submitting.
MPL has an onland oil and fuel exploration block positioned in Cambay Basin, Gujarat. The block CB-ONN-2005/9, which the corporate had received in seventh NELP bid spherical in 2008, has potential oil discovery of 45.5 million barrels of inplace reserves.
IOC’s Koyali refinery is positioned about 60 km from the block and in November 2019 it signed a contract to purchase oil from the block.
“IOC will implement the Decision Plan and full the regulatory processes, together with acquiring needed approvals, if any, for profitable implementation of the Decision Plan,” it stated.
As per the decision plan, the corporate can pay Rs 135 crore to secured monetary collectors, who had admitted claims of Rs 291 crore. No fee has been offered for unsecured monetary collectors, who had admitted claims of Rs 118 crore. The decision plan gives Rs 5.40 crore to operational collectors – distributors, workmen, workers and statutory dues – towards their complete admitted claims of Rs 73 crore.
Moreover, IOC will bear insolvency continuing price of Rs 8.7 crore. Cayman Island-based oil providers firm Halliburton Offshore Providers Inc had initiated insolvency proceedings in August 2021 after Mercator defaulted on fee of Rs 2.87 crore.
IOC’s decision plan for Mercator Petroleum was permitted by the committee of collectors by 100 per cent vote. It then moved to the NCLT, which has now given its approval.
IOC is the second PSU to have acquired an organization in an solvency continuing. In March this 12 months, India’s largest fuel agency GAIL acquired bancrupt private-sector chemical firm JBF Petrochemicals for Rs 2,079 crore, serving to the state-owned agency increase its footprint within the petrochemical enterprise.
GAIL had outbid a consortium of IOC and Oil and Pure Fuel Company (ONGC) within the insolvency course of run by IDBI Financial institution to get well Rs 5,628 crore of dues to monetary and operational collectors.
JBF was integrated in 2008 to arrange a 1.25 million tonnes a 12 months capability purified terephthalic acid plant at Mangalore Particular Financial Zone. The plant, which is a backward integration venture for JBF Industries’ polyester crops, was commissioned in 2017 however stopped operations after the corporate defaulted on its loans in the identical 12 months.
Mercator Petroleum Ltd. (MPL) was a wholly-owned subsidiary of Mercator Ltd. MPL is engaged within the enterprise of petroleum exploration, growth and manufacturing in India and overseas.
MPL has an onland oil and fuel exploration block positioned in Cambay Basin, Gujarat. The block CB-ONN-2005/9, which the corporate had received in seventh NELP bid spherical in 2008, has potential oil discovery of 45.5 million barrels of inplace reserves.
IOC’s Koyali refinery is positioned about 60 km from the block and in November 2019 it signed a contract to purchase oil from the block.
“IOC will implement the Decision Plan and full the regulatory processes, together with acquiring needed approvals, if any, for profitable implementation of the Decision Plan,” it stated.
As per the decision plan, the corporate can pay Rs 135 crore to secured monetary collectors, who had admitted claims of Rs 291 crore. No fee has been offered for unsecured monetary collectors, who had admitted claims of Rs 118 crore. The decision plan gives Rs 5.40 crore to operational collectors – distributors, workmen, workers and statutory dues – towards their complete admitted claims of Rs 73 crore.
Moreover, IOC will bear insolvency continuing price of Rs 8.7 crore. Cayman Island-based oil providers firm Halliburton Offshore Providers Inc had initiated insolvency proceedings in August 2021 after Mercator defaulted on fee of Rs 2.87 crore.
IOC’s decision plan for Mercator Petroleum was permitted by the committee of collectors by 100 per cent vote. It then moved to the NCLT, which has now given its approval.
IOC is the second PSU to have acquired an organization in an solvency continuing. In March this 12 months, India’s largest fuel agency GAIL acquired bancrupt private-sector chemical firm JBF Petrochemicals for Rs 2,079 crore, serving to the state-owned agency increase its footprint within the petrochemical enterprise.
GAIL had outbid a consortium of IOC and Oil and Pure Fuel Company (ONGC) within the insolvency course of run by IDBI Financial institution to get well Rs 5,628 crore of dues to monetary and operational collectors.
JBF was integrated in 2008 to arrange a 1.25 million tonnes a 12 months capability purified terephthalic acid plant at Mangalore Particular Financial Zone. The plant, which is a backward integration venture for JBF Industries’ polyester crops, was commissioned in 2017 however stopped operations after the corporate defaulted on its loans in the identical 12 months.
Mercator Petroleum Ltd. (MPL) was a wholly-owned subsidiary of Mercator Ltd. MPL is engaged within the enterprise of petroleum exploration, growth and manufacturing in India and overseas.
