Swan Energy, which along with Hazel Mercantile was declared the successful resolution applicant for bankrupt Reliance Naval and Engineering, has blamed the Hindenburg report and the subsequent turmoil in the stock markets for its inability to make the upfront payment as required under the resolution process.

In its application filed before the National Company Law Tribunal, Ahmedabad bench, the company said that in order to secure the upfront payment of around ₹300 crore, it had lined up investors “who were in the process of disbursing the necessary funds...”. But, it said, “recent events have disturbed the capital markets and have caused a major obstruction in raising any funds. This turbulence has been caused due to several reasons, including a report published by a foreign hedge fund containing allegations against a certain Indian conglomerate, which has led to an unprecedented deterioration in market capitalisation.”

Hazel Infra (the special purpose vehicle through which the acquisition is being undertaken) said that with a number of investors and funds still showing interest to invest in it as well as Swan Energy, it was working out structures with such investors through which the required funds could be raised. The company also affirmed that it had no intention of ceding control over Reliance Naval to any other entity.

After Swan Energy’s plea for an extension of four months to make the upfront payment, the NCLT ordered the company to pay ₹10 crore to the committee of creditors within seven days. It also ordered the creditors to file a reply within 2 weeks during which they should not take any coercive action.

In late January, Hindenburg research levelled allegations of malpractices within the Adani Group, subsequent to which stocks of companies in the group came under selling pressure.

The resolution plan submitted by Swan Energy’s SPV was approved by the lenders in February last year while the NCLT approved it in December.

Swan Energy, in a statement to the exchanges on Thursday, said that it would offer further updates on the matter as and when they occurred. The next hearing on this matter has been posted for April 17.