The Ahmedabad bench of the National Company Law Tribunal (NCLT) has directed Swan Energy to make a payment of Rs 250 crore as part of the resolution plan for the bankrupt Reliance Naval and Engineering Limited (RNEL). Led by Nikhil Merchant, who is managing director of the company, Swan Energy had bid successfully for RNEL in 2022, with a resolution plan of Rs 2,133 crore.
Swan Energy was supposed to make an upfront payment of Rs 250 crore to the lenders of RNEL as part of the resolution plan, but has failed to do so, despite two extensions. The deadline for the second extension was 14 September. Swan has now asked for a third extension.
Originally known as Pipavav Shipyard, RNEL was set up to build warships and owns a dry dock and other facilities in Pipavav Port, Amreli, Gujarat. It was acquired by the Anil Ambani led Reliance Infrastructure in 2015 in a $130 million deal.
Nikhil Merchant was considered a highly influential businessman five years ago, with close links to the upper echelons of the BJP.