Nagarjuna Oil Corp to be liquidated as resolution plan fails: promoters

Repeated attempts by creditors to identify an investor for the company fail despite extension of resolution process

Nagarjuna Oil Corporation Ltd (NOCL) has informed the National Company Law Tribunal (NCLT), Chennai, that its Committee of Creditors (CoC) has taken decision to go for liquidation of the company, as efforts to arrive at a resolution plan did not succeed.

Nagarjuna Oil Refinery Ltd (NORL), which holds 46.78 per cent of NOCL's share capital, said in a regulatory filing that the ailing firm's resolution professional has filed an intimation with the tribunal regarding the CoC's communication.

NOCL is implementing a six-million-metric-tonne-per-annum petroleum and oil refinery project in Cuddalore, almost 200 km south of Chennai, which has been stalled due to paucity of funds. The NCLT had earlier extended the period for Corporate Insolvency Resolution Process (CIRP) by 90 days starting January 21, 2018, as the process was not completed within the stipulated 180-day period.

Repeated attempts by the creditors to identify an investor for the company failed. The resolution professional appointed by the NCLT had earlier called for a fresh expression of interest from eligible bidders for the resolution plan, after efforts to find a successful bidder from candidates including Bharat Petroleum Corporation Ltd and UK-based Citax Ventures failed.