AHMEDABAD: A Swan Energy-backed special purpose vehicle (SPV) is moving closer to take over the debt-ridden Reliance Naval after submitting a resolution plan worth close to ₹3,000 crore under the insolvency law, said two officials close to the development.
The company’s resolution plan which includes payment of around ₹2,100 crore to the lenders and another ₹900 crore for working capital, operating expenses, capital expenditure and payment of dues to workers has been accepted by the committee of creditors (CoC) for Reliance Naval, according to people familiar with the development.
The corporate insolvency resolution proceedings (CIRP) of Reliance Naval are underway at National Company Law Tribunal (NCLT), Ahmedabad.
The E-voting on the resolution plan was concluded on March 17 and the resolution plan submitted by Hazel Mercantile has been duly approved by 94.86% CoC members under section 30 (4) of the Insolvency and Bankruptcy Code subject to the approval of NCLT, Ahmedabad, according to a BSE filing by Reliance Naval on March 21.
Swan Energy holds the majority stake with 74% equity in the SPV while Hazel Mercantile holds the remaining 26%, said the people quoted above.
{{/usCountry}}Swan Energy holds the majority stake with 74% equity in the SPV while Hazel Mercantile holds the remaining 26%, said the people quoted above.
{{/usCountry}}This is the third time that the resolution plans for the company have been invited.
In its order dated February 22, NCLT Ahmedabad disqualified a plea by Mumbai registered Citi Securities to be considered as a financial creditor. The company had moved the NCLT seeking to be considered as a financial creditor with a claim of ₹2,538 crore of assigned debt due from Reliance Naval. The company also sought to be counted as a voting member of the CoC overseeing the bankruptcy and insolvency process of the firm.
According to an NCLT order dated February 22, the “assignment of debt was not in good faith as portrayed and rather shows that the arrangement was made with a view to getting backdoor entry into the COC through the applicant assignee to have control over the process of the CIRP.”