Nagarjuna Oil Corp gets 90-day breather

Nagarjuna Oil Corporation has received an extension for its Corporate Insolvency Resolution Process (CIRP) for another 90 days, even as several public sector and private investors are eyeing to bid for the company’s control. The extension was approved by the National Company Law Tribunal (NCLT), as the process was not completed in the stipulated 180-day period.

The NCLT single Bench has issued an order extending the CIRP in response to an application filed by the resolution professional, S Rajendran, as per a resolution of the Committee of Creditors (CoC). The extension, for 90 days, comes into effect from January 21.

The Hyderabad-based company has attracted interest from at least three to four strong investors including public sector firms, foreign and Indian investors out of a total of around 20 investors to bid for a resolution plan as per the expression of interest (EoI) floated by the resolution professional.

The bidders’ list includes public sector players, foreign and Indian investors, said a source who requested anonymity.

In August 2016, Nagarjuna Oil Refinery Ltd, the promoter of NOCL, said the exchanges that various prospective investors including public sector companies such as Indian Oil Corporation had sought information on NOCL’s 6million metric tonnes per annum (MMTPA) petroleum oil refinery project at Cuddalore, around 200 kilometres south of Chennai.