Fresh bids invited for ABG Shipyard under insolvency law

New Delhi: Fresh bids have been invited for debt-ridden ABG Shipyard under the insolvency law after lenders rejected an earlier resolution plan, according to a public notice.

ABG Shipyard is undergoing insolvency proceedings under the Insolvency and Bankruptcy Code(IBC, 2016) as per the orders of NCLT.

Expressions of Interest (EoIs) have been invited from potential bidders for ABG Shipyard, as per the notice.

Resolution Professional Sundaresh Bhat has sought the EoIs under the IBC.

The company had yesterday informed BSE that the resolution plan submitted by a bidder was rejected by the lenders.

The last date for submission of applications is April 19 and for submission of resolution plan is April 23, as per the notice.

For corporate bodies, the minimum qualification to participate in the process includes consolidated net worth of Rs 500 crore or more at group level in the preceding financial year and consolidated group turnover of Rs 1,000 crore for any of the three preceding financial years.

For financial institutions/funds/PE investors, the criteria includes assets under management of Rs 2,000 crore or more as of the preceding year or committed funds available for investment /deployment in Indian companies or Indian assets of Rs 1,000 crore or more as on June 30, 2017.

Besides, applicants with experience in infrastructure, heavy engineering, acquisition and turnaround of the assets, will be considered.

ABG Shipyard owes about Rs 17,000 crore to the lenders.

The shipbuilder is among the 12 companies identified by the Reserve Bank for bankruptcy resolution.

Incorporated in 1985, ABG Shipyard is the flagship company of ABG group with interests in shipping and cement sectors.

It is one of the three private shipyards in India approved by the Indian Navy to build various types of naval vessels and has built several vessels for Indian defence sector.