Swan Energy gets one-year extension by NCLT for second tranche lender payment

Swan Energy Limited (SEL) has received a one-year extension from NCLT for the payment of second tranche due to the lenders of Reliance Naval and Engineering Limited (RNEL). As per the Resolution Plan, an amount of Rs. 312 crore is due to the lenders of RNEL on 23rd December 2023. However, as per recent order, NCLT has approved extension of paying that amount for a period of one year i.e. 23rd December 2024 along with applicable interest.

SEL has recently received approval from the NCLT-appointed Monitoring Committee of RNEL to constitute its own board, paving the way for a formal handover of management control.

Swan has set up the board with its managing Director Nikhil Merchant, Executive Director Paresh Merchant and Bhavik Merchant and Vivek Merchant, among others, as board members. Post incorporation of the board, Swan will finalise plans to put in place a top management structure to oversee operations.

SEL through its special purpose vehicle (SPV), Hazel Infra Limited, has recently made the payment of Rs.231.42 crore on 27th October, 2023 towards the upfront payment obligations of RNEL.

With this acquisition, Swan Energy Limited has strengthened its plan 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.