The National Company Law Tribunal (NCLT) has approved the acquisition of the insolvent Gujarat Hydrocarbons and Power SEZ Ltd by to Zaveri & Co on September 19,2023.

Gujarat Hydrocarbons and Power SEZ Ltd was established on August 17, 2007, with the objective of managing SEZs. It had an authorised share capital of ₹20 crore and a paid-up share capital of ₹9.8 crore.

SREI Infrastructure Finance Ltd filed for insolvency against Gujarat Hydrocarbons and Power SEZ Ltd in November 2020. This led to a freeze on financial activities, and Rakesh Kumar Agarwal was appointed as an Interim Resolution Professional (IRP).

Following this, Zaveri & Co submitted two resolution plans in April and August 2021 for the Gujarat Hydrocarbons bid. These plans were approved by the Committee of Creditors (CoC) during their 11th meeting in August 2021 with unanimous support. The CoC determined that these plans were feasible and viable for resolving the financial issues of the corporate debtor.

As per the resolution plan, SREI Infrastructure Finance Ltd will receive a total payment of ₹125 crore as a full settlement for their verified and accepted claims, which were initially worth ₹1,885.08 crore.

The resolution plan doesn’t allocate any payment to the only unsecured financial creditor, Assam Company India Ltd, the holding company of Gujarat Hydrocarbons and Power SEZ Ltd. This is because the company’s liquidation value is much lower than what’s owed to secure financial creditors.

Gujarat Hydrocarbons and Power SEZ Limited’s liquidation worth is ₹ 206 crore, while its anticipated fair value is ₹306 crore.

Meanwhile, Zaveri & Co and their nominee want to invest ₹2 crore by buying 20,000 fully paid-up equity shares worth ₹1,000 each from Gujarat Hydrocarbons.

Additionally, they aim to provide the company with an interest-free unsecured loan of up to ₹18 crore on the effective date.

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