Three firms submit bids for Reliance Naval and Engineering

By: |
August 18, 2021 1:30 AM

The committee of creditors (CoC) is likely to hold a meeting on Wednesday to evaluate the bids. Financial creditors have a total exposure of Rs 12,429 crore towards Reliance Naval and Engineering as on April 26, 2021.

The financial creditors had claimed Rs 43,587crore dues from the debt-ridden firm.

A Naveen Jindal group firm along with two other players are likely to have submitted final bids for the beleaguered shipbuilding firm Reliance Naval and Engineering, sources close to development told FE. The two other bidders include Netherlands-based APM Terminals and a consortium of GMS, Dubai and BESIKTAS of Turkey. The committee of creditors (CoC) is likely to hold a meeting on Wednesday to evaluate the bids. Financial creditors have a total exposure of Rs 12,429 crore towards Reliance Naval and Engineering as on April 26, 2021.

As per banking sources, Reliance Naval and Engineering was among the 22 shortlisted companies to be transferred to the newly formed National Asset Reconstruction Company (NARCL). However, a final decision on transferring of debt to NARCL is yet to be taken by the newly formed entity.

Earlier, 12 companies had submitted expression of interest (EoIs) for acquiring Reliance Naval. The other suitors who had submitted EoIs 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 other companies backed out citing post Covid-19 downturn and lack of orders. The former Anil Ambani group company was sent for debt resolution through insolvency and bankruptcy code (IBC) after the company failed to repay its debt to creditors. Reliance Naval and Engineering has been undergoing insolvency proceedings at the Ahmedabad bench of National Company Law Tribunal (NCLT) since January 15, 2020.

The financial creditors had claimed Rs 43,587crore dues from the debt-ridden firm. However, the resolution professional (RP) had admitted only Rs 12,429 crore of dues as on April 26, 2021. Reliance Naval 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.

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