NIE: ABG Shipyard headed for liquidation as Liberty house gives up bid

6 March 2019:  The ABG Shipyard is likely to head for liquidation as Liberty house has given up on the bid for it.

“The Liberty house finally given up on the bid. The Committee of creditors (CoC) has already rejected its bid after it defaulted on the Amtek Auto,” a source familiar with the proceedings told this publication.

ABG Shipyard, the debt-laden shipbuilder, is among the first list of 12 companies that the Reserve Bank of India has directed banks to refer to the bankruptcy court immediately.

The consortium of about two dozen banks, led by ICICI Bank, has mandated SBI Caps for finding the buyer for their 51 per cent equity in ABG Shipyard.

After the bids were floated, London-based metals house Liberty House emerged as the sole bidder of ABG Shipyard, which is facing Rs 18,245 crore claims from financial creditors.

Liberty House offered Rs 5,600 crore for the bid, which would be payable only after the fifth year, with a rider that there would be no interest payment in the interim period. However, the bankers already had rejected the offer.

“Even before Liberty House became the sole bidder, it had already defaulted on payment in case of Amtek Auto. So, the CoC was not in favour of Liberty House and that means that the company would go for liquidation,” the source added.

Order on ABG Shipyard is reserved by the National Company Law Tribunal, Ahmedabad.

The New Indian Express reported

Categories: General News, India Bankruptcy

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