The bankruptcy court has asked creditors of Nagarjuna Oil Corporation to explain the basis of liquidation value of the Chennai-based company’s assets and why it rejected some resolution plans.
The committee of creditors (CoC) has to submit its explanation before the Chennai bench of National Company Law Tribunal (NCLT) on Tuesday.
Petitioners in the case, Haldia Petrochemicals and Gulf Petrochemicals, had offered resolution plans for Nagarjuna Oil. At the last hearing, they had raised objection to CoC’s decision to reject their resolution plans and also the high liquidation value of the corporate debtor.
CoC had recommended liquidation on the ground that their bids were below the liquidation value of Rs 1,450 crore.
