Dozen parties express interest for Reliance Naval and Engineering

August 22, 2020 5:20 AM

The parties need to submit a final resolution plan by September 30. The committee of creditors (CoC) aims to file a resolution plan for approval in the National Company Law Tribunal (NCLT) by October 30,2020.

FE had earlier reported that deadline of submission of EoIs was extended three times from the original date of June 27.FE had earlier reported that deadline of submission of EoIs was extended three times from the original date of June 27.

By Ankur Mishra

The beleaguered shipbuilding firm Reliance Naval and Engineering has received expressions of interest (EoIs) from 12 parties, sources close to development told FE. These include Russia’s state-owned United Shipbuilding Corporation, US-based fund Interups and Netherlands-based APM Terminals.

The parties need to submit a final resolution plan by September 30. The committee of creditors (CoC) aims to file a resolution plan for approval in the National Company Law Tribunal (NCLT) by October 30,2020.

The other suitors who have submitted an EoI for the company include Chowgule Group, Hazel Mercantile, Next Orbit Ventures, JM Financial Asset Reconstruction Company (ARC), ARCIL, Phoenix ARC, Invent ARC, International Asset Reconstruction Company (IARC) and CFM ARC.

The applicants needed to submit EoIs by August 21. FE had earlier reported that deadline of submission of EoIs was extended three times from the original date of June 27. As per the updated timeline, the resolution professional will issue a final list of prospective resolution applicants by August 26. Thereafter, applicants can submit a resolution plan by September 30, 2020.

The financial creditors have claimed Rs 43,587-crore dues from Anil Ambani-promoted firm. However, the resolution professional (RP) has admitted only Rs 10,878 crore of dues so far.

The claims worth Rs 32,693 crore are under verification. The company has admitted claims of Rs 1,965 crore from State Bank of India (SBI), Rs 1,555 crore from Union Bank of India and Rs 1,375 crore from IDBI Bank, among others. The operational creditors have claimed Rs 1,922 crore from the company, of which only `485 crore has been admitted so far by the RP.

Reliance Naval and Engineering has been undergoing insolvency proceedings at the Ahmedabad bench of NCLT, since January 15 this year.

In the absence of buyers, two other companies in the shipping sector had earlier opted for liquidation. ABG shipyard, with a total debt of Rs 20,000 crore, and Bharti Shipyard, with its Rs 13,000-crore debt, went into liquidation.

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