MUMBAI: The National Company Law Tribunal, Ahmedabad (NCLT) has approved the Resolution Plan submitted by Hazel Mercantile Limited (HML) to acquire Reliance Naval and Engineering Ltd (RNEL).
Swan Energy Limited (SEL) is a strategic partner with HML, through a SPV, namely Hazel Infra Limited (HIL), to acquire RNEL, said SEL in a regulatory filing to the Bombay Stock Exchange.
As per the resolution plan, the successful bidder will pay Rs 2,108 crore to the creditors of RNEL. The resolution plan provides for cancellation of all currently outstanding ordinary equity shares being held by the existing shareholders, subject to issuance of one fresh equity share of the face value of Rs 10 for every 275 ordinary equity shares held by the existing shareholders.
Thus, 73,75,91,263 existing equity shares of the face value of Rs 10 each will become 26,82,150 ordinary equity shares of Rs 10 each. It is provided that the special purpose vehicle Hazel Infra Ltd shall take over the corporate debtor and this SPV shall subscribe to 5 crore fresh ordinary equity shares of the face value of Rs 10 each.
In a filing to the BSE, RNEL said as per the terms of the approved Resolution Plan, a monitoring committee is required to be constituted, which should comprise five members. The two members will be identified and appointed by the Resolution Applicant, two representatives will be identified and appointed by the financial creditors having highest share in the committee of creditors of the company, and fifth member shall be an independent insolvency professional, shall be jointly appointed by the remaining members.
The implementation of the Resolution Plan is proposed to be supervised by the monitoring committee, terms of appointment and duties of the committee will be as set out in the plan and the day-to-day operations and the management of the company should be carried out by the panel until the closing date as defined in the plan.