Swan Energy provides Reliance Naval with an advance payment of 50 crore

 Swan Energy provides Reliance Naval with an advance payment of 50 crore

Swan Energy, the successful resolution applicant for bankrupt Reliance Naval, said on Tuesday that it has made an early payment of 50 crore rupees in accordance with an NCLT ruling.

Swan Energy was told on October 5 by the NCLT Ahmedabad bench that it must pay a 250 crore advance fee before requesting any more extensions to finish the corporate bankruptcy resolution procedure.

Swan has submitted an interlocutory appeal to the tribunal asking for a postponement of the upfront payment necessary to carry out the company's resolution plan.

It still owes 200 crores in payments.

Swan Energy was given a 45-day extension by the tribunal on August 1; this extension terminated on September 14. The resolution petitioner asked the tribunal for an extension a third time with this request. On November 22, the subject will be heard in court.

Swan Energy received a second extension from the tribunal on August 1 that was good for 45 days and terminated on September 14. The resolution petitioner had requested a third extension from the tribunal. 

On November 22, the subject will be heard for the second time.

Swan applied for an extension of the deadline to finish the settlement procedure after continually failing to get the money for the initial payment.

Swan Energy and Hazel Mercantile were chosen as the winning bidders for the strapped-for-cash company. Swan had filed an offer of 2,133 crore, and the NCLT had accepted it in December of the previous year.

Swan was required to provide the lenders of Reliance Naval an advance payment of 293 crore by March 23 in accordance with the resolution plan. Swan was allowed until July 23 to make the payment, nevertheless.

According to the attorney who is aware of the issue, the consortium has already paid 50 crore to comply with the NCLT's orders to maintain the bankrupt corporation as a going concern. 

By the end of March, the lenders were expected to collect the advance payment of 293 crore, the attorney continued.