IFFCO Exits Triumph Offshore Joint Venture with Rs 440 Crore Stake Sale

IFFCO has withdrawn its plea from NCLT that aimed to restrict Triumph Offshore from issuing shares or securities to lenders for loan payments. This follows IFFCO selling its 49% stake in Triumph Offshore to Swan Energy Ltd for Rs 440 crore, exiting the joint venture.

Fertiliser cooperative IFFCO has withdrawn its plea filed in the National Company Law Tribunal (NCLT) that sought to restrain Triumph Offshore from issuing any shares or securities to lenders for the purpose of paying loans. This significant move came after IFFCO wound up its involvement in Triumph Offshore by offloading its entire 49% stake to joint venture partner Swan Energy Ltd (SEL) for a sum of Rs 440 crore.

In a petition submitted to the NCLT back in March, IFFCO had aimed to prevent Triumph Offshore and SEL from distributing shares or securities to lenders without its consent. IFFCO asserted that it was pre-paying its debt, which could lead to a dilution of its shareholding in Triumph Offshore.

A two-member bench of the NCLT has allowed IFFCO to withdraw its application. The NCLT order, dated June 27, stated, ''Counsel for applicants seeks permission to withdraw the application. They have also filed an affidavit. In view of the same, permission is granted.'' Triumph Offshore, a joint venture enterprise, was initially formed to establish a Floating Storage and Regasification Unit (FSRU), with Swan Energy retaining a majority 51% stake.

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