Edelweiss Asset Reconstruction Co Ltd (Edelweiss ARC), which holds ~75% of the shipyard’s outstanding debt, is in talks with a leading Russian defence shipmaker to invest up to 49% in Pinky Shipyard, says the financial newspaper.
Bharati Defence & Infrastructure Ltd (formerly known as Bharati Shipyard Ltd) plans to make its Goa-based defence shipyard Pinky Shipyard Ltd a separate entity and to bring in an international defence shipyard as an equity partner, reports a business daily.
Edelweiss Asset Reconstruction Co Ltd (Edelweiss ARC), which holds ~75% of the shipyard’s outstanding debt, is in talks with a leading Russian defence shipmaker to invest up to 49% in Pinky Shipyard, says the financial newspaper.
Edelweiss ARC believes that Bharati Defence may be able to clinch a deal with the Russian entity, given that the process of restructuring and consolidation is already behind it, Sameer Kaji, Consultant at Edelweiss Alternate Asset Advisors Ltd has been quoted as saying.
“We are adopting a two-pronged approach for the revival of Bharati Defence. Firstly, we will demerge Pinky Shipyard as a part of ring fencing it and selling equity stake up to 49% to restart defence shipbuilding orders to improve cash flows. We are talking to a government-run Russian defence ship maker so that Pinky Shipyard can start building interceptor boats and other defence projects,” Kaji told the paper.
A potential deal could be concluded in the next 3-6 months, said Kaji.
Kaji told the daily that the company was in talks with international lenders to secure ~INR 200 crore in funding to help restart commercial shipbuilding work.
Bharati Defence, with debt of INR 8,500 crore as of March 2013, went through a corporate debt restructuring (CDR) exercise with creditors. The exercise was not successful and the company exited the CDR cell in 2014.
Following this, the lenders’ consortium sold a majority of the loans to Edelweiss Asset Reconstruction Co Ltd.
No comments:
Post a Comment