Reliance Naval extends expressions of interest till August 21

August 8, 2020 4:00 AM

The committee of creditors (CoC) aims to file a resolution plan for approval at the National Company Law Tribunal (NCLT) by October 30.

Lenders are trying all options before recommending liquidation of the company, sources said.Lenders are trying all options before recommending liquidation of the company, sources said. (Website image)

By Ankur Mishra

The resolution of beleaguered shipbuilding firm Reliance Naval and Engineering will be delayed further as the deadline for submission of bids has been extended by two weeks.

Those interested in the Reliance Group company were supposed to submit their expressions of interest (EoIs) by August 6, but this has been extended till August 21. This will be the third extension of deadline from the original date of June 27.

FE has learned from sources that the decision to extend the deadline has been taken because lenders were unhappy with the EOIs received so far. Lenders are trying all options before recommending liquidation of the company, sources said.

The financial creditors have claimed Rs 43,587-crore dues from the company.

In the absence of buyers, two companies in the shipping sector had earlier gone 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.

As per the updated timeline, the resolution professional will issue a final list of prospective resolution applicants by August 26.

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 to September 30, instead of September 15 earlier.

The committee of creditors (CoC) aims to file a resolution plan for approval at the National Company Law Tribunal (NCLT) by October 30.

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 the naval engineering company.

Financial institutions and private equity investors should have minimum assets under management of Rs 1,000 crore to bid for Reliance Naval and Engineering.

Though financial creditors have claimed Rs 43,587 crore, the resolution professional (RP) has admitted only Rs 10,878 crore of dues so far.

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 Rs 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.

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