Swan Energy (SEL), the successful resolution applicant for Reliance Naval and Engineering (RNEL), has got the bankruptcy court’s approval to reconstitute the latter’s board, paving way for its formal takeover.
The monitoring committee of RNEL approved the constitution of a new board at its meeting held on Friday. The committee also cleared the firm’s standalone financial results and allotment of 50 million shares to a special purpose vehicle (SPV) among others, Swan Energy said in a regulatory update.
The monitoring committee was appointed by the National Company Law Tribunal (NCLT).
SEL will set up a board soon with its managing director Nikhil Merchant and executive director Paresh Merchant and others as members. Once the board is set up, the company will put in place a top management structure to oversee RNEL’s operations.
Following the deal, SEL has firmed up its plan to emerge as the biggest private player in the commercial, naval defence vessel manufacturing and ship repairing segments. Apart from targeting major contracts from the naval defence sector, the company is also focusing on driving business for commercial vessel manufacturing and for the oil and gas sector.
Earlier, NCLT had approved the `2,100-crore bid for RNEL made by Hazel Infra, the SPV set up with Swan Energy holding 74% stake and Hazel Mercantile the remaining 26%. On October 27, the SPV had paid `231.42 crore towards the upfront payment obligations. The payment was prelude to the final closure of proceedings pending before the NCLT’s Ahmedabad bench, with the formal handover of RNEL expected to follow.
Mumbai-headquartered Swan group has major interests in textile, real estate and oil & gas sectors.