Private lender ICICI Bank has initiated insolvency proceeding against Western India Shipyard, a subsidiary of ABG Shipyard which too is facing bankruptcy proceedings. The company has outstanding debt of Rs 130 crore and had reported losses of Rs 39 crore as on March 2016.
Lenders have appointed O M Kanoongo as interim resolution professional and the board of the company has been dissolved. The company was admitted for insolvency proceeding on December 12 and the late day for submitting the claims is fixed on January 12. ABG Shipyard, which has 53% stake in Western Shipyard, too was referred to bankruptcy court by ICICI Bank. In 2007, ABG Shipyard has acquired 40% stake in Western India Shipyard from ICICI Bank following which its stake rose to 60%. Lenders now have close to 12% stake in Western India Shipyard.
Banks led by ICICI have called for binding bids for ABG Shipyards, which faced claims of Rs 18245 crore from financial creditors and Rs 457 crore from operational creditors. Over 475 companies have been referred to National Company Law Tribunal by lenders for recovery of dues.
Source: Economic Times