Swan Energy Makes Rs 40 Crore Debt Repayment, Strengthens Financial Position

Swan Energy, a diversified conglomerate with interests in textiles, real estate, oil and gas, and petrochemicals, announced on Wednesday that it has made a significant debt repayment of Rs 40 crore towards its entire fund-based facilities of its textile unit. The repayment was made to a consortium of banks led by Union Bank of India, which includes Bank of Baroda, Punjab National Bank, and Mehsana.

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Reducing Debt Position

This move is part of Swan Energy's commitment to substantially reduce its debt position and strengthen its financial health. The company aims to efficiently manage its financial obligations and further enhance its financial position.

Diversified Presence

Swan Group has a diversified presence across various sectors, including textiles, real estate, oil and gas, and petrochemicals. Additionally, the recent acquisition of Reliance Naval and Engineering marks its entry into the shipbuilding, ship repairing, and heavy fabrication industry.

Prepayment of FSRU Project Debt

Swan Energy recently made a prepayment of Rs 300 crore debt for its Floating Storage and Regasification Unit (FSRU) Project. The company utilized its internal accruals through its subsidiary Triumph Offshore Private (TOPL) to make the prepayment to the consortium of senior lenders of the FSRU Project.

Extension for Reliance Naval and Engineering Payment

In a separate development, the National Company Law Tribunal (NCLT) Ahmedabad granted Swan Energy a one-year extension for the payment of Rs 312 crore to lenders of Reliance Naval and Engineering. The original payment deadline was December 23, 2023, but it has now been extended to December 2024, including applicable interest. This extension provides additional financial flexibility to the company.

Successful Resolution Applicant

Swan Energy, along with Hazel Mercantile, emerged as the successful resolution applicant for the cash-strapped firm, Reliance Naval and Engineering. Swan had submitted a bid of Rs 2,133 crore, which was duly approved by the NCLT in December 2022.