JBF Petro lenders extend deadline to get better value

Public sector companies

and an ONGC-Indian Oil consortium are likely to compete with , HPCL-Mittal Energy, and Kolkata-based MCPI according to the expressions of interest (EoIs) lenders received.

The strong interest has raised banks’ hopes of a handsome recovery.

“We have seen good interest from both private and public sector companies and to get best value we need to get enough time for the bidders. Government companies have a lengthy process of approvals and some need to take approvals from their ministries to bid for companies which is why it was thought best to extend the timeline,” said a person aware of the deal.

JBF Petrochemicals owes lenders led by

a total of $463 million (about ₹3,658 crore) in principal primarily from external commercial borrowings and foreign currency term loans. is the lead lender with $252 million of loans outstanding. Other lenders include Exim Bank, , and .

Total outstanding including debt is close to ₹5,000 crore.

Founded as a yarn texturing firm in 1982, JBF makes PTA used to make polyester value chain products used in consumer goods, textile and packaging industries.

It was admitted to the bankruptcy code in February after lenders finally decided to take the IBC route after five years of trying to find a buyer for the company .