A panel of lenders led by IDBI Bank will hire an independent consultant to begin business negotiations with Hazel Mercantile Limited, Navin Jindal Group and a consortium of Dubai GMS and Turkey’s Besiktas Group after their offers for the bankruptcy Reliance Naval and Engineering Ltd (RNaval) were in accordance with the law but below the fair value and the liquidation value set for the transaction.
RNaval, the bankrupt shipyard formerly owned by Anil Ambani’s Reliance group, is sold under the insolvency and bankruptcy code to recover unpaid dues worth 10,878 crore for financial creditors.
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Operational creditors have claimed another ₹ 1,922 crore from the company, of which only 485 crore has been admitted so far.
The debt admitted by the resolution professional and approved by the creditors committee is 12,000 crore.
Low bid values
The shipyard’s liquidation value was set at 1,800 crore while the fair value was set at 2,500 crore.
Hazel Mercantile’s 730 crore yen resolution plan was about 6% of admitted debt, while Naveen Jindal Group’s 320 crore offer results in a 97% haircut on admitted debt. The GMS-Besiktas consortium offered an initial sum of 50 crore.
Hazel Mercantile is a unit of the Veritas Group based in Mumbai. GMS Inc is the world’s largest cash buyer of recyclable vessels.
“As all three offers have been found to comply with the law, the creditors committee will appoint an independent consultant to begin trade negotiations with the three parties,” one of the sources said.