The National Company Law Tribunal’s Ahmedabad bench has directed Swan Energy, the successful resolution applicant for Reliance Naval and Engineering (RNEL), to make an upfront payment of about Rs 250 crore. This came after the company sought another extension to make the payment, as the present deadline, which was postponed twice, ended on September 14.
The tribunal, which heard Swan Energy’s plea on October 5, directed the company to make the payment as proposed in the resolution plan before the next hearing, scheduled for November 22.
Swan Energy has again approached NCLT seeking another extension of two months, the third in a row. As per the resolution plan submitted by Swan Energy, the consortium of Hazel Mercantile and the winners to acquire debt-laden R-Naval, had to make an upfront payment of Rs 293 crore to the lenders by March 23 2023. However, the deadline was then extended to July 23, then again on August 1 it was extended to September 14.
The consortium has so far paid about Rs 50 crore (in many tranches) on directions of NCLT to keep the RNEL as a going concern.
In 2022, Hazel Mercantile, in partnership with Swan Energy, emerged as the winner to acquire debt-laden R-Naval with 95% of the Committee of Creditors (CoC) approving its resolution plan. Their resolution plan of Rs 2,133 crore was approved by the NCL in December 2022, after lenders issued a letter of intent terming them as the winners.
SKIL Infrastructure, promoted by industrialist Nikhil Gandhi, was the original promoter of Pipavav Defence and Offshore Engineering, which was sold to the Reliance ADA Group in 2015 and then renamed as R-Naval.
Timeline
- January 15, 2020: RNEL admitted for CIRP
- December 23, 2022: Resolution Plan approved by NCLT, Ahmedabad
- March 23, 2023: Date for upfront payment, then extended to July 23, 2023
- Later extended to September 14