Swan Energy pays Rs 50 crore with lenders of Reliance Naval, seeking an extension for the remaining amount

Swan Energy, the winning bidder of bankrupt Reliance Naval and Engineering, has deposited Rs 50 crore with lenders and sought a further extension to pay the entire first instalment, initially due in March 2023, said people with knowledge of the matter.

To date, it has paid about Rs 100 crore of the first instalment, which is Rs 292 crore. It has to make payment in six instalments and the second instalment of Rs 313 crore is due in December this year.

Swan Energy is a strategic partner of the resolution applicant Hazel Mercantile Ltd through its special purpose vehicle – Hazel Infra Ltd – to acquire RNEL.


It is in the midst of raising Rs 1435 crore by issuing preferential shares to Singapore-based foreign portfolio investor GCP INAB Pte ltd- a move partly aimed at financing the acquisition of Anil Ambani promoted RNEL, as reported by ET on September 26.

The preferential issue is priced at Rs 495 a share, a 69% premium over today trading price.

In an order dated October 5, the Ahmedabad bench of the National Company Law Tribunal (NCLT) directed the resolution applicant to pay ‘the amount that has not been given as per schedule.’

On the same day, the resolution applicant had sought one more extension to repay dues. The division bench of NCLT, in its October 5 order, said that it will consider an extension only after the winning bidder pays the amount that is proposed in the resolution plan. The next hearing is scheduled on November 22.

Per the resolution plan approved by lenders, the winning bidders has to pay lenders in six installments. Twice, the Ahmedabad bench has granted an extension to winning resolution applicants to pay lenders. At the same time, the tribunal also directed the winning bidder to pay 200 basis points over State Bank of India's Marginal Cost of Lending rate (MCLR) as interest on instalments due to the delay.

While the winning bidder has not paid the first instalment, the second instalment of Rs 312 crore is due in December 2023. After that, it had to pay Rs 196 crore in December 2024, Rs 188 crore in December 2025, Rs 280 crore in December 2026, and the last instalment of Rs 864 crore in December 2027.

The resolution professional, Sudip Bhattacharya, backed by Duff & Phelps, has admitted Rs 12,429 crore in claims by secured financial creditors.

RNEL is a shipbuilding company based in Gujarat, acquired Pipavav Shipyard Ltd and Pipavav Defence & Offshore Engineering in 2016.