Jindal Power exits race to buy JBF Petro; RIL, others in contention
Just a week before the deadline to submit financial offers expires, Jindal Power has exited the race to acquire bankrupt JBF Petrochemicals. This paves the way for Mukesh Ambani-owned Reliance Industries (RIL) and L N Mittal-backed HPCL-Mittal Energy and government-owned companies to make an offer for the stressed company by August 8.
The American private equity and KKR-backed petrochemicals company, which has a plant in Mangaluru in Karnataka, had defaulted on bank loans worth Rs 5,000 crore.
The Naveen Jindal-owned firm was among the seven companies which had shown interest in JBF Petrochemicals as on June 9, but lost interest due to changed economic conditions and rising interest rates, said a banker close to the transaction. Jindal Power did not comment on the developments.
