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Business News/ Companies / News/  Monitoring panel clears directors for Rel Naval board
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Monitoring panel clears directors for Rel Naval board

Earlier, Swan Energy in its application before the NCLT had, requested an extension of the timeline to complete the resolution process

In December 2022, the tribunal had approved Swan Energy’s ₹2,133 crore rescue plan for insolvent Reliance Naval. (Reuters)Premium
In December 2022, the tribunal had approved Swan Energy’s 2,133 crore rescue plan for insolvent Reliance Naval. (Reuters)

Mumbai: 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. Later, the company duly paid a part payment of nearly 50 crore following the tribunal’s order.

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ABOUT THE AUTHOR
Priyanka Gawande
Priyanka Gawande is a senior legal correspondent at Mint. She has worked as legal reporter for four years with both television and digital mediums. Based in Mumbai, she reports on disputes across sectors including banking, corporates and finance. This also includes insolvency and bankruptcy cases and intellectual property rights (IPR) litigation. Her focus also comprises tracking capital markets and disputes relating to securities law. Previously, Priyanka worked with Informist Media for 2.5 years covering major insolvency and bankruptcy cases and corporate developments. She started her career in journalism with Business Television India (BTVi) where she reported on primary markets, banking, finance and insurance companies.
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Published: 08 Dec 2023, 10:20 PM IST
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