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The Ahmedabad court on Friday issued an oral order approving the settlement plan, but the detailed written order has not yet been uploaded on the tribunal’s website.
In March, 95% of RNEL’s lenders approved the duo’s resolution plan.
The winning bidder, the Swan Energy – Hazel Mercantile team, offered a gradual payment of 2,040 kroner, while on a net present value (NPV) basis it was 1,218 kroner.
Of the 2,040 kroner offered by the duo, a sum of 1,640 kroner will be paid over the next five years, and the remaining payment will be made from repayment of certain liabilities. Naveen Jindal owned Jindal Steel and Power was also in the fray to buy RNEL.
The tribunal on Friday also ruled that two separate petitions filed by Reliance Infrastructure and Jindal Steel and Power opposing the plan submitted by the winning bidder were dismissed.
Reliance Infrastructure, a sister company of RNEL and Jindal Steel, has petitioned that the Swan-Hazel team must comply with 29(A).
The Insolvency and Bankruptcy Code (IBC) under Section 29 (A) prohibits defaulting promoters or their affiliates from filing a resolution plan. Reliance Infra and Jindal Power filed the petition that Nikhil Merchant, who is the managing director of Swan Energy, was until recently the director of Navi Mumbai Smart City Infrastructure, a company promoted by Nikhil Gandhi.
Separately, Reliance Infrastructure submitted a settlement plan under Section 12A of the IBC, which was rejected by the Ahmedabad NCLT in August. Reliance Infra appealed the Tribunal’s order to the National Company Law Appellate Tribunal.
According to the proposal made by Reliance Infrastructure, an ADAG group company, lenders would get ₹ 25 crore as upfront payment, ₹ 25 crore at the end of the first year, ₹ 50 crore at the end of the second year, ₹ 50 crore at the end of the third year, ₹ 75 crore at the end of at the end of the fourth year and 2,300 crowns at the end of the fifth year.
Any offer made under section 12(A) of the Insolvency and Bankruptcy Code (IBC) gives the courts the power to allow a claim to be withdrawn from bankruptcy proceedings provided that 90% of creditors by value agree to it.
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