ICICI Bank invites bids to sell $28 million exposure in John Energy
Photo Credit: Ruby Sharma
ICICI Bank has invited expressions of interest (EoIs) from asset reconstruction companies (ARCs), banks, non-banking finance companies (NBFCs), and others to sell its stressed exposure in Gujarat-based John Energy Ltd.
The private lender’s outstanding principal for the external commercial borrowing (ECB) loan to the borrower as of June 30 is $27.7 million. Additionally, the bank has a rupee-denominated term loan exposure of Rs 6.05 crore to the borrower.
The bank, in an advertisement in a financial newspaper on Monday, stated that entities interested in acquiring the stressed exposure from ICICI Bank must submit EoIs by August 28.
After submitting their EoIs, they will need to sign a non-disclosure agreement. Following this, they will be given two weeks to conduct due diligence on the asset.
John Energy is currently facing various litigations initiated by ICICI Bank and other lenders before the National Company Law Appellate Tribunal (NCLAT). Previously, in March, the NCLAT had allowed the company to deposit Rs 254 crore along with 12 per cent interest as per the terms of its one-time settlement with ICICI Bank and Axis Bank and directed the Ahmedabad bench of the National Company Law Tribunal (NCLT) to decide on the insolvency application filed against the company by Axis Bank.
Meanwhile, as per a May 16 order of the Ahmedabad bench of the NCLT, the insolvency application moved by Axis Bank against John Energy was rejected.
John Energy is engaged in onshore drilling, natural gas compression, among other activities, and caters to the upstream and midstream oil and gas industry. It has a rig fleet of 31 rigs, consisting of 18 drilling rigs, 13 work-over rigs, multiple gas compression packages, and gas conditioning equipment.
First Published: Aug 26 2024 | 6:00 PM IST