Anil Ambani-led Reliance Naval and Engineering is facing bankruptcy proceedings under the Insolvency and Bankruptcy Code at the National Company Law Tribunal (NCLT). The Ahmedabad bench of the NCLT, which is hearing the insolvency case filed by infrastructure lender IFCI Ltd, has posted the case for hearing on December 8.

NCLT Member Judicial Bikki Raveendra Babu and Member Judicial Manorama Kumari presided at the November 27 hearing of the case, which has been filed under Section 7 of the Insolvency and Bankruptcy Code section of the Companies Act.

Reliance Naval, yet another defence shipyard that is floundering amidst high debt, has been asked to file its objections, if any, within one week.

Refuting the charge, Reliance Naval said in a statement that there are no merits in the application filed by IFCI before NCLT “as it is an unsecured creditor”.

In a response to the stock exchanges, Nikhil Jain, Chief Financial Officer said, “The action of IFCI is unwarranted and premature. The 25 secured lenders of the company have also requested IFCI that the matter be resolved outside the NCLT."

Refinancing scheme This April, Reliance Naval had secured a nod from a consortium of lenders, led by IDBI, to exit its corporate debt restructuring (CDR) package. Agreeing to the exit plan of the company with a longer maturity period for loans worth about ₹6,800 crore, the consortium of lenders had also given their green signal to implement a refinancing scheme.

As per the refinancing scheme approved by the CDR Empowered Group, the company's debt of ₹ 6,800 crore will be refinanced with maturity of about 20 years and lower interest rate.

Reliance Infra had acquired Pipavav Defence and Offshore Engineering in March 2015. The company was named Reliance Defence and Engineering and then renamed Reliance Naval and Engineering.

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