Monitoring panel clears directors for Rel Naval board

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Swan Energy Ltd on Friday said a National Company Law Tribunal (NCLT) appointed monitoring committee has approved the reconstitution of the board of Reliance Naval and Engineering Ltd. In December 2022, the tribunal had approved Swan Energy’s ₹2,133 crore rescue plan for insolvent Reliance Naval. In Friday’s meeting, the committee approved the appointment of Nikhil Merchant as managing director and Paresh Merchant as executive director.

Bhavik Merchant and Vivek Merchant have also been added to the board; however, the company did not specify their designations. “Post incorporation of the board, Swan will finalize plans to put in place a top management structure to oversee operations," the company said in a statement. Following the acquisition, Swan Energy targets to emerge as the biggest private player in the commercial and naval defence vessel manufacturing and ship repairing segments.

Apart from targeting major contracts from the naval defence sector, the company is also focusing on driving business for commercial vessel manufacturing and for the oil and gas sector. In October, Swan had paid ₹ 231.42 crore towards the upfront payment for debt-laden Reliance Naval & Engineering. This was after the Ahmedabad National Company Law Tribunal in its order on 8 October directed the company to make an upfront payment of ₹ 250 crore before seeking any more extension in completing the corporate insolvency resolution process.

The secured financial creditors approved Swan Energy’s request for an extension till 15 November to make the remaining advance payment of ₹. 231.42 crores. Earlier, Swan Energy in its application before the NCLT had, requested an extension of the timeline to complete the resolution process.