Debt-ridden IDBI Bank on Thursday filed insolvency application against Anil Ambani Group-led Reliance Naval & Engineering in National Company Law Tribunal (NCLT).
Reliance Naval & Engineering owes over Rs 9,000 to over two dozen banks mostly state-run, led by IDBI Bank.
The bank may withdraw insolvency application from NCLT if 90 percent of lenders agree to resolution plan submitted by Reliance Naval & Engineering.
The company has presented a one-time settlement offer to lenders on Thursday, which offers Rs 1,000 crore as cash repayment upfront and Rs 300 crore as other repayments.
The promoters of Reliance Naval & Engineering also offered to take over Rs 1,350 crore of company's guarantee and move it to Reliance Infrastructure (Relinfra).
However, lenders have given Reliance Naval & Engineering 10 days’ time to revise its settlement proposal.
The settlement offer includes conversion of remaining debt into equity and convertible redeemable preference shares (CRPS).
CNBC-TV18 is awaiting response from Reliance Naval & Engineering.
Anil Ambani-led Reliance Group had in 2016 acquired controlling stake in Pipavav Defence and Offshore Engineering and renamed it Reliance Defence and Engineering. Last year, it renamed the firm to Reliance Naval and Engineering.
Reliance Naval is the second firm from the Anil Ambani group to become NPAs after its once flagship but now bankrupt Reliance Communication, which is already at the Mumbai NCLT.
RCom owes over Rs 45,000 crore to 31 banks apart from a China Development Bank.