JSPL, GMS & Kotak Express Interest in Reliance Naval & Engineering
Business Standard reported that Jindal Steel & Power Limited, GMS and Kotak Special Situations Fund have registered to bid as for Reliance Naval &
Business Standard reported that Jindal Steel & Power Limited, GMS and Kotak Special Situations Fund have registered to bid as for Reliance Naval & Engineering Limited by February 28 deadline. Earlier known as Pipavav Defence & Offshore Engineering, Reliance Naval has been facing severe financial headwinds since 2013. It was bought over by Mr Anil Ambani group in 2015. IDBI Bank dragged Reliance Naval to the bankruptcy court claiming dues worth INR 1,159.43 crore. Reliance Naval was admitted for insolvency proceedings on 15 January by the Ahmedabad bench of the National Company Law Tribunal.
The financial creditors have claimed INR 43,587 crore dues but the resolution professional has admitted only INR 10,878 crore of dues. IRP had admitted claims of INR 1,965 crore from State Bank of India, INR 1,555 crore from Union Bank of India and INR 1,375 crore from IDBI Bank, among others. The operational creditors had claimed INR 1,922 crore from the company, of which only INR 485 crore had been admitted by the RP.
The process to find a buyer for shipyard began in May 2020 with deadlines being extended four times. In August, 12 companies had submitted expressions of interest including APM Terminals, United Shipbuilding Corporation of Russia, Hazel Mercantile Ltd, Chowgule Group, Interups of USA, Next Orbit Ventures, ARCIL, IARC, JM ARC, CFM ARC, Invent ARC and Phoenix ARC.
JSPL MD Mr VR Sharma confirmed to BS JSPL’s interest and said that “We are looking at it in two ways. One is the strategic location as it is port based and the other is that it can be a good outlet to consume our own plates.”