Synopsis: On Wednesday, the committee of creditors (CoC) is expected to meet to review the proposals. As of April 26, 2021, financial creditors had a total exposure of Rs 12,429 crores to Reliance Naval and Engineering.
Sources close to the development informed FE (Financial Express) that a Naveen Jindal group entity, along with two other participants, are likely to have submitted final bids for the troubled shipbuilding giant Reliance Naval and Engineering.
APM Terminals of the Netherlands and a consortium of GMS, Dubai, and BESIKTAS of Turkey are the other two candidates. On Wednesday, the committee of creditors (CoC) is expected to meet to review the proposals.
Reliance Naval and Engineering had total exposure to financial creditors of Rs 12,429 crores as of April 26, 2021. Reliance Naval and Engineering was one of 22 companies shortlisted to be transferred to the newly formed National Asset Reconstruction Company (NARCL), according to banking sources.
However, the newly established corporation has yet to make a final decision on debt transfer to NARCL.
Twelve firms had previously expressed interest in acquiring Reliance Naval through expressions of interest (EoIs). 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 are among the other suitors who have filed expressions of interest for the company.
The other companies pulled out due to a post-Covid-19 slump in business and a lack of orders. After failing to repay its creditors, the erstwhile Anil Ambani group company was committed to the Insolvency and Bankruptcy Code (IBC) for debt resolution.
Reliance Naval and Engineering has been insolvent since January 15, 2020, according to the Ahmedabad bench of the National Company Law Tribunal (NCLT).
Financial creditors had demanded Rs 43,587 crore from the insolvent company. However, as of April 26, 2021, the resolution professional (RP) has admitted just Rs 12,429 crore in dues.
Reliance Naval has admitted claims from the State Bank of India (SBI), Union Bank of India (UBI), and IDBI Bank, among others, totalling Rs 1,965 crores.
