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IFCI Files Insolvency Proceedings Against Reliance Naval & Engineering At NCLT

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Infrastructure lender IFCI has filed insolvency proceedings against Anil Ambani-led Reliance Naval & Engineering at the National Company Law Tribunal in Ahmedabad.

The Delhi-based development financial institution had lent around Rs 150 crore to Reliance Marine & Offshore Ltd., a subsidiary of Reliance Naval. IFCI approached the National Company Law Tribunal after it failed to service the loan.

A case was filed in mid- November, according to the official cited above. But the case is yet to be admitted. According to an Interim order by the tribunal dated Nov. 27, Reliance Naval must file objections to IFCI’s plea with a week. The case comes up for admission on Dec. 8.

This is the second Anil Ambani group company after Reliance Communications Ltd. that’s been dragged to the NCLT by lenders. China Development Bank recently filed insolvency proceedings against Reliance Communications Ltd., BloombergQuint reported earlier. The financial creditor joined operational creditors Ericsson India Ltd and Manipal Tech Ltd. which already filed a petition seeking resolution under the new Insolvency and Bankruptcy Code.

Also Read: How RCom Tried To Block An Insolvency Plea By Its Chinese Lenders

Earlier this year, Reliance Naval & Engineering exited a corporate debt restructuring initiated by a consortium of lenders led by IDBI Bank. The exit involved longer maturity for loans worth Rs 6,800 crore which allowed Reliance Naval to participate in the strategic partnership programme of the Ministry of Defence.

Reliance Naval’s CDR involved refinancing of existing long term debt with door-to-door tenure of the loans extended to 18 years. It also involved conversion of Rs 650 crore of debt into equity at Rs 59.35 apiece.

The board in October approved raising up to Rs 1,500 crore via a rights issue.

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