Lenders to Reliance Naval and Engineering Ltd (R-Naval) are evaluating the revised offers submitted by a consortium led by Swan Energy Ltd as well as Jindal Steel and Power Ltd (JSPL) for the bankrupt shipyard located at Pipavav in Gujarat, earlier owned by Anil Ambani.

While the details of the revised offers placed by the Swan Energy-Hazel Mercantile Ltd consortium and JSPL on December 13 are not known, the former appears to have a slight edge over the latter, though both the bids offer hardly 5-10 per cent recovery of the unpaid dues of over ₹13,000 crores, making lenders wary of the resolution plans, according to banking sources.

Swan Energy, owned by Gujarat and Mumbai-based businessman Nikhil Merchant, has a 74% stake in the special purpose vehicle (SPV) that has submitted a resolution plan for the shipyard while the balance is held by Hazel Mercantile.

Lenders had asked the two resolution applicants to better their offers submitted in an earlier round in which the Swan Energy-Hazel Mercantile team quoted some ₹2,400 crore for the shipyard. Of this, the consortium had offered a cash payment of only ₹800 crore to the lenders spread over a five-year period, translating into a net present value of about ₹650 crore.

In comparison, JSPL’s offer was above ₹400 crore.

Apart from the ₹800 crore cash pay-out, the Swan Energy-Hazel team had offered to pay the lenders 75% of the arbitration claim that R-Naval is pursuing against ONGC Ltd for cancelling a ship order. The total amount involved in arbitration is ₹1,200 crore. The Swan-Hazel has offered to pay ₹950 crore to the lenders, in case the arbitration is decided in favour of R-Naval.

Lenders, though, are unhappy with this part of the offer as arbitration cases generally take years to conclude, and there is no certainty that R-Naval will win the case.

Swan-Hazel has also offered the lenders ₹105 crore of GST credit as and when realized. But, for realizing this credit, a minimum GST billing of ₹600 crore is needed, which, in the absence of any order, is difficult to realize soon. Further, this amount is still in dispute, banking sources said.

The Swan-Hazel consortium has also offered to contribute about ₹100 crore towards CIRP costs which will not go to financial creditors.

Though, it has also offered to infuse ₹320 crore towards working capital and capex requirements of R-Naval, the company has not submitted any timeline on this, besides the amount will not go to the financial creditors.

“Effectively, financial creditors will get about ₹650 crore in the present value from the Swan-Hazel resolution plan as against their outstanding debt of over ₹13,000 crore (5% recovery) and much below the liquidation value (about 1,600 crore) for the company set by the lenders,” a banking source said.