The decision to extend the deadline has been taken because lenders were unhappy with the expressions of interest (EoIs) received so far, sources close to development told FE.
By Ankur Mishra
The resolution professional (RP) of the beleaguered Reliance Naval and Engineering has extended the deadline for submission of bids by a month. The decision to extend the deadline has been taken because lenders were unhappy with the expressions of interest (EoIs) received so far, sources close to development told FE.
After the extension, bidders can submit EoIs for the company by July 27. The earlier deadline for submission of EoIs expired on June 27. The RP will issue a final list of prospective resolution applicants by August 16, 2020. Thereafter, the applicants can submit their resolution plan for the company. The last day for submission of the final resolution plan has also been pushed by one month to September 5, 2020, instead of August 6 earlier. The committee of creditors (CoC) aims to file a resolution plan for approval at the National Company Law Tribunal (NCLT) by October 5, 2020.
A company with a minimum net worth of Rs 600 crore and a consolidated group turnover of at least Rs 2,000 crore can bid for Reliance Naval and Engineering. Financial institutions and private equity investors should have minimum assets under management of Rs 1,000 crore to bid for the company.
The financial creditors to Reliance Naval have claimed Rs 43,587 crore from the company. Of this, the RP has admitted Rs 10,878 crore of dues to financial creditors and another Rs 32,693 crore is 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 Reliance Naval, of which only Rs 485 crore has been admitted so far by the RP.
Reliance Naval and Engineering has been undergoing insolvency proceedings at Ahmedabad bench of NCLT since January 15,2020.