A Consortium of 22 banks led by SBI will soon release Rs650 crore to ABG Shipyard under a Rs10,000 crore CDR deal
ABG Shipyard Ltd, which is under corporate debt restructure (CDR) scheme, will receive Rs650 crore from lenders by this month-end as part of the Rs10,000-crore debt recast deal worked out in March.
Dhananjay Datar, executive director and chief financial officer of ABG Shipyard told reporters that the Surat-headquartered company is confident of successfully getting out of the CDR cell in two years.
The company has convinced the 22-bank consortium led by State Bank of India (SBI), which had two specific reservations, and has got sanction for release of the money, he said.
On the banks’ demand for pledge of shares by promoters, Datar said ABG has promised that promoters will be pledging their 68% holding in the company by March 2015.
It can be noted that in late March, a group of 22 banks led by SBI had cleared the recast of Rs10,000 crore in loans advanced to the troubled shipbuilder under the CDR process, making it the second biggest loan recast in recent times. This recase deal is next only to the Rs13,500-crore debt recast done for engineering and construction major Gammon India in July 2013.
Under CDR, around Rs2,500 crore worth of long-term loans and Rs7,000 crore of working capital loans were restructured with a two-year moratorium for interest payment.
The issue over a Rs236-crore investment in an asset management company in the tax haven of the Cayman Islands — about which the banks had sought clarity — has also been settled, he said.
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