Swan Energy makes upfront payment of ₹50 crore for Reliance Naval

livemint.com:

₹50 crore as upfront payment, in line with a National Company Law Tribunal (NCLT) order. On 5 October, the Ahmedabad bench of the NCLT had directed Swan Energy to make an upfront payment of ₹250 crore before seeking any more extensions to complete the corporate insolvency resolution process. Swan had filed an interlocutory application before the tribunal seeking an extension of time for making the upfront payment to implement the resolution plan for the company.

It is yet to make a ₹200 crore payment. On 1 August, the tribunal had granted Swan Energy an extension of 45 days, which ended on 14 September. This was the third extension that the resolution applicant sought from the tribunal.

The matter will be taken up for hearing on 22 November. On 1 August, the tribunal had granted Swan Energy a second extension of 45 days, which ended on 14 September. This was the third extension that the resolution applicant had sought from the tribunal.

The matter will be next taken up for 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. Swan Energy along with Hazel Mercantile had emerged as the successful bidder for the cash-strapped firm.

Swan had submitted a bid of ₹2,133 crore which was approved by the NCLT in December last year. As per the resolution plan, Swan was to make an upfront payment of ₹293 crore to the lenders of Reliance Naval by 23 March. Swan, however, was given an extension till 23 July to make the payment.