The Ahmedabad court on Friday gave an oral order approving the resolution plan, but a detailed written order is yet to be uploaded on the tribunal’s website.
In March, 95% of RNEL’s lenders had approved the resolution plan of the two.
winning bidder, swan energy Hazel Mercantile team offered ₹2,040 crore severance pay as against ₹1,218 crore based on Net Present Value (NPV).
Of the ₹2,040 crore offered by the pair, ₹1,640 crore will be paid over the next five years, and the rest from recovery of some dues. Naveen Jindal is the owner of Jindal Steel & Power. was also in the race to acquire RNEL.
The tribunal also ruled on Friday that two separate petitions were filed Reliance Infrastructure and Jindal Steel And the power to object to the plan submitted by the winning bidder was denied.
Reliance Infrastructure, a subsidiary of RNEL and Jindal Steel, petitioned that the Swan-Hazel team is required to comply with 29(A).
The Insolvency and Bankruptcy Code (IBC) under Section 29(a) bars defaulting promoters or their related parties from submitting a resolution plan. Reliance Infra and Jindal Power had filed the petition that Nikhil Merchant, the managing director of Swan Energy, was till recently the director of Navi Mumbai. smart city infrastructureCompany promoted by defaulter 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 has appealed against the order of the tribunal to the National Company Law Appellate Tribunal.
₹25 crore as upfront payment to lenders, ₹25 crore at the end of first year, ₹50 crore at the end of second year, ₹50 crore at the end of second year, as per the proposal made by ADAG group company Reliance Infrastructure will be received. at the end of the third year, ₹75 crore at the end of the fourth year and ₹2,300 crore at the end of the fifth year.
Any resolution given under Section 12(a) of the Insolvency and Bankruptcy Code (IBC) gives power to tribunals to allow withdrawal of an application from insolvency proceedings, provided 90% of the creditors agree to it.