Liberty House, the UK based metals group, has once again emerged as the only bidder for ABG ShipyardNSE 1.94 % which is into the fourth round of bidding, said people familiar with the matter.
The company has paid off its dues to Exim Bank to be eligible for bidding after it was found that its non-clearance of dues to the state-owned lender was an obstacle in its efforts to buy the defaulting company, said those people who did not want to be identified.
While it may be the fourth attempt to sell the sinking ship maker, lenders are sceptical about the attractiveness of the offer as the financials and chances of revival are not favourable.
“This is the fourth offer from Liberty House for ABG Shipyard but we are not very sure if the offer is attractive,” said one of the persons cited above.
ABG Shipyard is facing claims of Rs 18,245 crore from financial creditors. The resolution of ABG Shipyard has become onerous for the lenders with few interested in a firm that does not have great prospects even as the government is pushing for ‘Make in India’.
In the earlier rounds of bidding too, Liberty House was the sole bidder. All its past offers were rejected for various reasons. In the first round held in February, the binding bid from Liberty was rejected on grounds that the offer was too low for lenders to be convinced. In the second round, the company missed the deadline for submission of bids. Subsequently, in the third round the company’s default to Exim Bank made it ineligible to bid for bankrupt companies under the Insolvency and Bankruptcy Code. Under Section 29A of IBC, non-payment of dues disqualifies companies from bidding.
