MUMBAI : Swan Energy Ltd, the successful resolution applicant through its SPV Hazel Infra has paid ₹231.42 crore towards the upfront payment for cash-strapped Reliance Naval & Engineering.
The Ahmedabad National Company Law Tribunal in its order on 8 October, directed Swan to make an upfront payment of ₹250 crore before seeking any more extension for completing the corporate insolvency resolution process.
In essence, the secured financial creditors approved Swan Energy’s request for an extension till 15 November to make the remaining advance payment of ₹231.42 crore.
On 1 August, the tribunal granted Swan Energy a second extension of 45 days, which ended on 14 September. This was the third extension that the resolution applicant sought. The NCLT will take up the matter for further hearing on 22 November.
After repeatedly failing to arrange funds for the upfront payment, Swan in its application, requested an extension of the timeline to complete the resolution process. Later, the company made a part payment of nearly ₹50 crore following the tribunal’s order.
“We are enhancing the shipyard manufacturing capacity to play our part in making India among the top five countries of the world in heavy fabrication—be it in naval, defence or oil and gas, and bridge the current demand-supply gap,” said Prashant Merchant, promoter, Swan Energy Group.
Swan Energy will now be a significant private player in the commercial and naval defence vessel manufacturing and ship repairing segments.
The company is focusing on driving business for commercial vessel manufacturing and for the oil and gas sector, the company said in an official statement on Friday.
Swan Energy along with Hazel Mercantile (consortium) had emerged as the successful resolution applicant for the cash-strapped firm. Swan submitted a bid of ₹2,133 crores, duly approved by the NCLT in December 2022.
Under the resolution plan, Swan was to make an upfront payment of ₹293 crore to the lenders of Reliance Naval by 23 March. Swan, however, got a further extension till 23 July.
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Updated: 27 Oct 2023, 10:41 PM IST