The banks are actively pursuing the possibility of a change of ownership and management at ABG Shipyard, says the paper
Lenders to ABG Shipyard Ltd have decided to issue a public notice inviting expression of interest (EOI) from buyers keen to pick up a controlling stake in the company, reports a business daily.
“We are going for an open process since it is more transparent and we will get a better sense of the valuation of the company this way,” one banker close to the development has been quoted as saying.
“Initially, when we were going through a closed process, we could not find that many buyers. The discussions with the Vietnamese investors is still on, though we are doing this open process to see if any surprises come up,” the banker told the financial newspaper.
On 9th March, the paper had reported that the lending consortium was in discussions with a Vietnamese financial investor to sell a majority stake in ABG, after they invoked the strategic debt restructuring (SDR) provision in December.
The consortium is led by ICICI Bank and State Bank of India (SBI).
The banks are actively pursuing the possibility of a change of ownership and management at ABG Shipyard, says the paper.
Another option that banks are exploring is to sell the assets of ABG Shipyard to recover their money, it adds.
ABG’s CDR was one of the largest loan recasts undertaken in recent years by India’s banks, second only to the INR 13,500 crore debt reorganization done for Gammon India in July 2013.
“We are going for an open process since it is more transparent and we will get a better sense of the valuation of the company this way,” one banker close to the development has been quoted as saying.
“Initially, when we were going through a closed process, we could not find that many buyers. The discussions with the Vietnamese investors is still on, though we are doing this open process to see if any surprises come up,” the banker told the financial newspaper.
On 9th March, the paper had reported that the lending consortium was in discussions with a Vietnamese financial investor to sell a majority stake in ABG, after they invoked the strategic debt restructuring (SDR) provision in December.
The consortium is led by ICICI Bank and State Bank of India (SBI).
The banks are actively pursuing the possibility of a change of ownership and management at ABG Shipyard, says the paper.
Another option that banks are exploring is to sell the assets of ABG Shipyard to recover their money, it adds.
ABG’s CDR was one of the largest loan recasts undertaken in recent years by India’s banks, second only to the INR 13,500 crore debt reorganization done for Gammon India in July 2013.
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