More than $3bn bad debt with ABG Shipyard

Vol 22, PW 20 (25 Jul 19) News in Brief

One of India's largest shipyard and rig manufacturers ABG Shipyard is battling to save its yards at Magdalla, DAHEJ and Goa as a group of 32 banks steps up pressure for it to repay Rs24,276cr ($3.4bn).

This report learns ABG's largest outstanding debt of Rs7089cr ($1bn) is owed to ICICI Bank followed by IDBI Bank which is owed Rs3641cr ($528m), State Bank of India Rs2944cr ($427m), Bank of Baroda Rs1360cr ($197m), Exim Bank of India Rs1327cr ($192m), Indian Overseas Bank Rs1228cr ($178m) and Punjab National Bank Rs1081cr ($157m). A host of other banks including Standard Chartered, Bank of India, Bank of Baroda (Singapore), Syndicate Bank, SBI (Singapore), Indian Bank and Indian Bank (Singapore), Yes Bank, Canara Bank and Central Bank of India are also claiming outstanding loans.

This list was disclosed on July 13 by Sundaresh Bhat of Mumbai-based BDO Restructuring Advisory, appointed as ABG liquidator, when he filed details of financial creditors, operational creditors, employees and workmen with the Ahmedabad bench of the National Company Law Tribunal (NCLT). Set up in 1985, ABG was one of three private shipyards approved by the Indian Navy to build naval vessels.

At its DAHEJ yard, ABG can also construct offshore rigs and platforms.