NCLT approves Hazel-Swan consortium's plan for Reliance Naval Defence & Engineering

The Swan Energy-led Hazel Mercantile consortium plan for Reliance Naval Defence & Engineering has been approved today by the Ahmedabad special bench of the National Company Law Tribunal (NCLT).

The appeals filed by Jindal Steel and Power and Reliance Infrastructure have been rejected by the NCLT.

In an exchange filing today, Reliance Infrastructure said the resolution plan of Hazel Mercantile for Reliance Naval had been approved by the NCLT. 

Earlier this year, Swan Energy had been issued a Letter of Intent (LoI) as the winning bidder for Reliance Naval shipyard. 

This marks yet another step towards the resolution of Anil Ambani's bankrupt Reliance Naval and Engineering Ltd, formerly known as Pipavav Shipyard.

The Hazel Mercantile consortium's resolution plan has already been approved with nearly 95 per cent of lenders of Reliance Naval voting in favour.  

The latest development is a significant milestone in the long-drawn saga of the resolution process of Reliance Naval which began over 26 months ago to recover over Rs 12,429 crore owed to financial creditors including the State Bank of India and the Union Bank of India, among others. 

As voting on the bids neared its end last year, Reliance Infra had launched a twin-pronged effort to try and wrest back control of what was the largest private defence shipyard in India.

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