Swan Energy Repays Rs 40 Cr Debt Of Its Textile Unit

Swan Energy on Wednesday said it has made a Rs 40-crore repayment of debt towards its entire fund-based facilities of textile unit to the consortium of banks led by Union Bank of India.

The consortium of banks comprises Union Bank of India, Bank of Baroda, Punjab National Bank and Mehsana, Swan Energy said in a statement.

This move is a part of the company's commitment to significantly reduce the debt position in its books.

The debt repayment demonstrates Swan Energy's goal to further strengthen the financial position by efficiently managing the financial obligations, it added.

Swan Group has presence in the textile, real estate, oil and gas and petrochemical sectors.

Additionally, the recent acquisition of Reliance Naval and Engineering marks its entry into the shipbuilding, ship repairing and heavy fabrication industry.

Swan Energy has recently made a prepayment of Rs 300 crore debt for its Floating Storage and Regasification Unit (FSRU) Project.

The company has made the debt prepayment out of its internal accruals through its subsidiary Triumph Offshore Private (TOPL) to its consortium of senior lenders of FSRU Project, it added.

Meanwhile, last week the National Company Law Tribunal (NCLT) Ahmedabad gave Swan Energy an one-year extension for the payment of Rs 312 crore to lenders of Reliance Naval and Engineering.

As per the resolution plan, the amount was to be paid by December 23, 2023, and is now extended to December 2024, which includes applicable interest, offering additional financial leeway to the company.

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